Financial Statements Of: Bhatta Company

Chandragiri Hills Limited
Kathmandu, Nepal
Financial Statements
of
F.Y.2077l7g
Auditor
Bhatta & Company
Chartered Accountants
Kathmandu, Nepal
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Independent Auditor's Report

To the Shareholders of
Chandragiri Hills Limited (Group and Standalone)
Report on the Consolidated Financial Statements:
Opinion
We have audited the accompanying consolidated and standalone financial statements of M/s Chandragiri
Hills Limited and its subsidiaries (collectively referred as " Group") which comprise the Consolidated and
standalone Statement of Financial Position as on Ashadh 31't, 2078 (15th Ju|y,2021,), and Consolidated
and standalone Statement of Profit Loss, Consolidated and standalone Statement of Other
or
Comprehensive Income, Consolidated and standalone Statement of Changes in Equity and Consolidated
and standalone Statement of Cash Flows for the year then ended, and Notes to the Financial Statements,
including Significant Accounting Policies.
In our opinion and to the best of our information and according to the explanation given to us , and based
on the consideration of report of other auditor on separate financial statements of subsidiaries as audited
by other auditor, the aforesaid consolidated financial statements present fairly, in all material respects,
the financial position of the company as on Ashadh 31st,2078 (15th july, 202'J.), and its financial
performance, and its cash flows for the year then ended in accordance with Nepal Financial Reporting
Standards (NFRSS).
Basis for opinion

We conducted our audit in accordance with Nepal Standards on Audltlng (NSAs). Our responslbilities
under those standards are further described in the Auditor's Responsibilities for the Audit on the Financial
Statements section of our report. We are independent of the group in accordance with the ICAN's
Handbook of Code of Ethics for Professional Accountants together with the ethical requirements that are
relevant to our audit of the financial statements, and we have fulfilled our other ethical responsibilities in
accordance with these requirements and the ICAN's handbook of The Code of Ethics for Professional
Accountants. We believe that the audit evidence we have obtained along with the consideration of audit
report of other auditor referred in "Other Matter" paragraph below, is sufficient and appropriate to
provide a basis for opinion on the consolidated and standalone financial statement.
Key Audit Matters

Key audit matters are those matters that, in our professionaljudgment, were of most significance in our
audit of financial statements of the current period. These matters were addressed in the context of our
audit of the financial statements as a whole, and in forming our opinion thereon, and we do not provide
a separate opinion on these matters.
Page 1 of 7
Key Audit Matters How our audit addressed Key Audit Matter
covtD - 19
I lmpact of COVID 2019 Our audit procedure includes: -
On March 2020, Ihe World Health Organization We obtained an understanding of key assumption
declared the Novel Coronavirus (COVID-19) adopted by the company in assessing the impact
outbreak to be a pandemic. Nepal Government based on our understanding of the company's
has imposed lock-downs across the country. These business.
I lock-downs and restrictions due to COVID 19
pandemic have posed significant challenges to the Performed the following procedures:
business of the company. This required the
o
Reviewed the status of long-term borrowings
I and company's availment of moratorium to the
company to assess impact of COVID 19 on its
repayment;
operations. o Reviewed the receivables position as at 31't
I Ashadh 2078 on the date of the report.
The company assessed the impact of COVID-19 on
r Assessed impact of Company's plan to re-open
the future cash flow projections. The Company has
resort and cable car in a phased manner;
also prepared a range of scenarios to estimate
I o Assessed disclosures made in the financial
financing requirements. In view of the above, we
statements with regard to the above.
identified impact of COVID 19 on going concern as
a key audit matter.
I
Revenue Recognition
Audit procedures includes: -
I
Revenue from Resort and cable car oper-atiorr is We exarrrilred the revenue recognltlon of the
:he most significant amount In the consolidated company by:
I
ncome statement and it is a key performance o Assessing and testing the company's lT system
ndication to which the management and users of and its internal controls related to the revenue
he financial statements pay particular attention. cycle by nrakirrg enquiry of responsible
n addition, intense competition in the tourism executives, gaining an understanding of the
I
ndustry in Kathmandu, which is the key location controls and selecting representative samples
rf the Company operations, has significantly to test the operation of the designed controls
ffected the company's operating performance. which respond to the above risks.
'here are therefore risks with respect
to the . Applying a
sampling method to select
iming of revenue recognition. to revenue recognition to
agreements related
assess whether revenue recognition was
consistent with the conditions of the relevant
agreement, and whether it was in compliance
with the company's policy.
o On a sampling basis, examining supporting
documents for actual revenue transactions
occurring during the year and near the end of
the accounting period.
o Reviewing credit notes and reversals of
basis.
revenue transactions on sample
r Performing analytical procedures on I
disaggregated data-, -"to detect possible I
irregularities..;in s6les traDkctions throuehout I
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the period, particularly for accounting entries
made through journal vouchers
o Evaluated the adequacy of disclosures in the
financial statements.
Information Techno General Controls
Our audit procedures have a focus on lT systems Audit procedures includes:
and controls due to the pervasive nature and o Test of the operating effectiveness of the
complexity of the lT environment, the large company's access controls over the
volume of transactions and the reliance on information systems that are critical to
automated and lT dependent manual controls. financial reporting. We inspected requests of
Among others, these are key to ensuring operating changes to systems for appropriate approval
effectiveness of lT dependent application-based and authorization.
controls. lf the lT control over financial data is r Evaluated whether lT guidelines have been
improper, there is risk of wrong reporting to the formulated and assess the contracts with the
management, regulator as well as other lT vendor.
stakeholders. o Understanding, where relevant, changes were
made to the lT controls and applications
during the audit period that may have a
significant impact on financial reporting.
legal and Regulatory Matters
We focused on this area as the company operates Audit procedures includes:
in a legal and regulatory environment that is o Understanding, evaluating the design and
exposed to significant litigation and similar risks testing the operational effectiveness of the
arising from disputes and regulatory proceedings. key controls over the legal provision and
Such matters are subject to many uncertainties contingency processes.
and the outcome may be difficult to predict. These r Enquired with those charged with governance
uncertainties inherently affect the amount and to obtain their views on the status of all
timing of potential outflows with respect to the significant litigation and regulatory matters.
provisions which have been established and other Enquire with the company's internal legal
contingent liabilities. counsel for all significant litigation and
regulatory matters and inspected internal
notes and reports.
o Assessed the methodologies on which the
provision amounts are based, recalculated the
provisions, and tested the completeness and
accuracy of the underlying information.
o Evaluated the adequacy of financial statement
disclosure in respect of contingencies
Property, Plant & Equipment o We obtained an understanding, evaluated the

Property, Plant and equipment is evaluated for design and tested the operating effectiveness
recoverability based on expected future cash of controls over the Company's review process
flows if there are indicators of potential over impairment testing of property and
impairment. Auditing management's assessment equipment, including controls over
of potential impairment of property, plant and management's review of the significant
equipment was of highly judgmental due to the assumptions descripe! bove.
significant estimation required in determining the .a
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page 3 of 7
estimated hold period expected future cash Our testing of the Company's impairment
flows, discount rate and/or capitalization rates for assessment included, among other
the properties subject to a recoverability test and/ procedures, evaluating the significant
or a fair value measurement. In particular, the assumptions and testing the completeness
expected future cash flows are based on and accuracy of the underlying data used by
assumptions, including the projections of Company to develop the expected future cash
revenues and expenses based on estimated flows, if applicable, for their properties.
growth rates that are forward looking, could be We compared the significant assumptions
affected by future economic and market used by management to current industry and
conditions, and sensitive to discount rate and/or economic trends, changes to the company's
capita lization rate changes. strategy and other relevant factors.
We assessed the historical accuracy
of management's estimates and perforrned
sensitivity analyses of significant assumptions
to evaluate changes in the expected
undiscounted future cash flows and fair value
of the properties that would result from
changes in the assumptions.
o We held discussions with management about
the current status of potential transactions
and about management's judgments to
understand the probability of future events
that could affect the hold period and other
cash flow assumptions for the properties.
Other Information
The management of group are responsible for the preparation of the other information. The other
information comprises the information included in the management report and other progress reports
but does not include the financialstatements and our auditor's report thereon.
Our opinion on the consolidated financial statements does not cover the other information and we do not
express any form of assurance conclusion thereon.
In connection with our audit of the consolidated financial statements, our responsibility is to read the
other information, compare with the financialstatement of the subsidiaries audited by the other auditor,
to the extent it related to these entities and, in doing so, consider whether, based on work done by us on
consolidated and standalone financial statement, the information therein is materially inconsistent with
the financial statements.
We have not audited the financial statements and other financial information of subsidiaries. Theses
financial statement and other financial information have been audited by other auditors whose report
has been furnished to us by the management and our opinion on the financial statement is so far as it
related to the accounts and disclosures included in respect of these subsidiaries are based solely on the
report of the other auditors if, based on the work we have performed, we conclude that there is a material
misstatement of this other information, we are required to report that fact. We have nothing to report in
this regard.
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Page 4 of 7
Responsibilities of Management and Those charged with Governance for the Financial Statements
The Group's management and board of directors are responsible for the preparation and fair presentation
of the consolidated and standalone financial statements in accordance with Nepal Financial Reporting
Standards. This responsibility also includes maintenance of adequate accounting records for safeguarding
of the assets of the entity and for preventing and detecting fraud and other irregularities; selection and
application of appropriate accounting policies ; making judgment and estimate that are reasonable and
prudent; and the design; implementation and maintenance of adequate internal financial control, that
are operating effectively for ensuring the accuracy and completeness of the accounting records, relevant
to the preparation and presentation of consolidated and standalone financialstatementthatgive a true
and fair view and are free from material misstatement, whether due to fraud or error.
In preparing the financialstatements, management is responsible for assessing the Company's ability to
continue as a going concern, disclosing, as applicable matters related to going concern and using the going
concern basis of accounting unless management either intends to liquidate the Company or to cease
operations, or has no realistic alternative but to do so.
Those charged with governance are responsible for overseeing the Company's financial reporting process.
Auditor's Responsibilities for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are
free from material misstatement, whether due to fraud or error, and to issue an auditor's report that
includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an
audit conducted in accordance with NSA's will always detect a material misstatement when it exists.
Misstatements can arise from fraud or error and are considerpd material if, indiviclurally or in aggregate,
they could reasonably expect to influence the economic decisions of users taken on the basis of these
financialstatements Further responsibilities of the auditor have been mentioned in Appendix 1.
Other Matter
We did not audit the financial statement and otherfinancial information of two subsidiaries, Multipokhara
Development Pvt. Ltd. and Chandragiri Paragliding Ltd. These financial statements and other financial
information have been audited by other auditor who have expressed unmodified opinion on those
statements. Those reports have been furnished to us by the management, and our opinion on those
consolidated financialstatements in so far as it relates to the accounts and disclosure included in respect
of these subsidiaries, are based solely on the report of other auditors.
Our opinion on the consolidated financial statement and our report on other legal and regulatory
requirement below, is not modified in respect of the above matters with respect to our reliance on the
work done.
Report on Other Legal and Regulatory Requirement

o We have obtained information and explanations asked for, which, to the best knowledge and belief,
were necessary for the purpose of our audit.
o In our opinion, the Consolidated and standalone Statement of Financial Position as on Ashadh 31,
2O78 ('J.srh July,2O2I), and Consolidated and standalone Statement of Profit or Loss, Consolidated and
standalone Statement of Other Comprehensive Income, Consolidated and standalone Statement of
Changes in Equity and Consolidated and standalone Statement of Cash Flows for the year then ended,
and Notes to the Financial Statements, including Significant Accounting Policies applied by the
Company have been prepared in accordance with the requirements of the CompaniesAct,2063 and
\,Page 5 of 7
are in agreement with the book of accounts maintained by the Company including relevant records
relating to preparation of the aforesaid financialstatements have been kept so far as it appears from
our examination of those books and record of the Company.
To the best of our information and according to explanation given to us and so far appeared from our
examination of the books of account of the Company, we have not come across cases where Board of
Directors or any employees of the Company have acted contrary to the provisions of law relating to
the accounts, or committed any misappropriation or caused loss or damage to the company or acted
in a manner to jeopardize the interest and security of the company.
The operation of Company is within its jurisdiction.
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Yagya Raj Bhatta, FCA

Proprietor
Bhatta & Company
D ate : 207 8 / 09 / 06 (2027/ 12 / 21,)

U Dl N No: 21,1221,CAOO146KKlzw
Page 5 of 7
Appendix- 1
As a part of audit in accordance of NSAs, we exercised professionaljudgment and maintain professional

skepticism throughout the audit of Chandragiri Hills Limited for FY 2077 /78 (2020/2021,) We also:
ldentified and assessed the risk of material misstatement of the financial statement whether due to
fraud or error, design and perform audit procedure responsive to those risks, and obtained audit
evidence that is sufficient and appropriate to provide an opinion. The risk of not detecting a material
misstatement resulting from fraud is higher than one resulting from error, as fraud may involve
collusion, forgery, intentionalomission, misrepresentation, or the override of internal control.
Obtained an understanding of internal control relevant to the audit in order to design audit
procedures that are appropriate in the circumstances, but not for the purpose of expressing an
opinion on the effectiveness of internal control.
Concluded an appropriateness of management use of going concern basis of accounting and, based
in audit evidence obtained, whether a material uncertainty exists related to events or condition that
may cast significant doubt on the company's ability to continue as going concern. lf we concluded that
a material uncertainty exists, we are required to draw attention in our auditor's report to the related
disclosures in the consolidated financial statements or, if such disclosure is inadequate, to modify our
opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's
report. However, future events or conditions may cause the Company to cease to continue as going
concern.
Evaluated the appropriateness of accounting policies used as the reasonableness of accounting
estimates and related disclosures made by management.
Evaluated the overall presentation, structLrre, and content of financial statement including the
disclosures, and whether the financial statement represent the underlying transactions and events in
a manner that achieves fair presentation.
Obtained sufficient appropriate audit evidence regarding the financial information of the entities or
business activities to express an opinion on the financial statements. We remain solely responsible
for our audit opinion.
We communicated with those charges with governance regarding, among other matters, the planned
scope and timing of the audit and significant audit findings, including any significant deficiencies in
internal control that we identify during our audit.
We also provided those charged with governance with a statement that we have complied with
relevant ethical requirements regarding independence, and to communicate with them all
relationships and other matter that may reasonably be though to bear on our independence, and
where applicable, related standards.
From the matters communicated with those charged with governance, we determine those matters
that were of most significance in the audit of the consolidated financial statements of current period
and are therefore the key audit matters. We describe these matters in our auditor's report unless law
or regulation precludes public disclosure about the matter or when, in extremely rare circumstances,
we determine that a matter should not be communicated in our report because the adverse
consequences of doing so would reasonably be expected to outweigh the public interest benefits of
such communication.
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PageT of7
Kathmandu, Nepal
Consolidated Statement of Financial position
As on 15th tuly 2O2t
in NPR
Particulars Standalone
Assets rsl07/2020
Non Current Assets
Property, Plant and Equipment 3,287,382,832 3,329,0s9,929 3,1,1,1,,482,832 3,L53,L59,929
Intangible Assets
4,362,262 5,064,566 4,362,262
I nvestment in subsidiary
5,064,566
180,500,000 180,s00,000
Other Investments 28,800,000 1,4,400,000 28,800,000 14,400,000
Deferred Tax Assets
4,000,0s4 30,487,887 4,000,054
Non Current Deposits 30,453,649
570,959 528,501 570,959
Total Non Current Assets s28,501
LL6,t07 0,883 3,329, to7 ,106,645
Current Assets
Non Financial Assets
I nventory
Other Non-Financial Assets

23,398,810 23,352,1.33 23,398,810 23,352,t33
206,300,835 245,995,375 23I,557,324
Financial Assets 271.,227,1,73
Receivables & Curent Deposit
16,977,566 19,006,73s 1 q nnA 72(
Current Tax Assets 4,788,622 3,557,053 4,L88,62.2 3,557,053
Cash and cash equivalent
95,771,,O57 1,9,798,666 95,27L,057
Total Current Assets 1,9,298,666
346,636,899 3t1,709,961 37L,393,378
l'otalAssets 336,44t,760
3,67L,752,996 3,697,250,844 3,7OL,t09,496 3,720,548,404
l.iabilities and Equities
tq u ity
Share Capital 1,534,091,000 1,350,000,000 1,534,091,000 1,350,000,000
Reserves (481,903,01 1) 209,1,36,284 141.2,409,733]| 139,717,38s)
Total Equities 1,O52,tg7,ggg 776 L2t,681.,267 L,2t0,282,61.5
Non- Current Liabilities
Fmployee Benefit
5,496,861. 4.839 507 5,496,861
Financial liabilities 4,839,507
Tcrm Borrowi 2,363,276,699 2,036,946,014 2,363,276,699
Total Non current Liabilities ,946.014
368,77 785,521 2,368,173,s60
cur""t Liabim; 785,527
Financial Liabilities
Short Term Borrowing 69,566,250
Trade and other Payable
190,388,083 69,s66,250 1"90,388,083
1.87,225,195 31,8,213,524 141.,088,407
Total Current Liabilities 278,092,185
250,791 1,606 .,
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Total Liabilities t 005 ,128 2,5 7 2,510
Total [iabilities and 790
7L, 995 3,691 3,70t,709,486 3,720,
Significant Accounting policiesand Note7to integral part of Financial statement.
As per our date
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Proprietor ,,22
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Poudel
Uttam Kumar Nepal
Director Director
Director
Date:20/12/2021
Place: Kathmandu
Kathmandu, NePal
Consolidated Statement of Profit or Loss
As on 15th JulY 2021
Figures in NPR
Slar nlalut te
rs/07l2o2o
) ) 1 ,948,824 413,083.421 221,948,824 413,O83 ,421,

Rcvcnuc from OPchtions
32,845,553 61,926,152 32,845,553 6r,926,152
L-ess: operation Expenses
189,L03,27r 351,156,669 L89,LO3,277 351,156,669
Net Operating Revenue
7,466,768 29,030,357 7,466,768 29,030,357

Other Income
69,338,293 72,L59,472 69,263,L52 72,084,112
Administrative ExPenses
48,805,813 94,088,653 48,805,813 94,088,653
Personnel Expenses
4,814,1,57 4,733.490 4,a74,157 4,733,490
Advertisement ExPenses
73,55r,776 2O9,2O5,4Lt 9L7

Profit Before Interest, Depreciation and Tax
27a,224,463 195,508,095 278,224,463

Finance ExPenses
r2r,956,1201 (121,881,1 941,752]-

Profit Before Depreciation and Tax
124,357,573 r22,247,896 1-24,357,573 122,247,896

Depreciation and Ammortization Expenses
313,893) (246,238,7s2l- ( 131,191,648

Profit Before Tax
Income Tax ExPense
Current Taxes
Dcfer red Iax (lncome)/[xPenses _ 26,4s2,832 _ (24,609,086) 26,4s3,s9s 124's14'8481
Net Profit for the Year 72,766,72s1 (106,6s7 (105,616,800)
Prof it/Loss f rom Discontinue operation

Earning per share
(L7.781 (7.e0)
Earnings Per Share(NPR) )
(7.90)
Per
As per our report of even date

Auditor
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Prasad Dhakal Yagya Raj qhatte, FCA
Proprietor'
Bhatta & Company
', /il Kalyan Gurung Uttam Kumar Nepal

He-m Raj Dhakal
Di rector Director Director
Daret 20/12/2021,
Place: Kathmandu
Kathmandu, Nepal
Consolidsated Statement of Cash Flow
As on 15th July 2O2t
in NPR
Particulars Group Standalone
rsto7t20zr 7slo7/202C tslo7l202r r5107
operaung acttvtues
r/tro5s, oerore tax (246,313,893 (131,266.948) (246,238,752 (131,191,648)
Adjustments for non-cash items and non-operating adjustments
Depreciation and ammortization expenses L24,357,s73 1,22,247.896 t24,357.s73 1.22,247,896

:inance Expenses
195,508,095 21,8,224,463 19s.508.095 218,224,463
Changes in Operating assets and liabilities

lhanges in operating assets 41-.038.00s 78,470,626 40,978,3L4 78,35 1,,825
Changes in operating liabilities 136,330,975) L21,,678,4t7 136,346,42s1 1.2L,72L,9L9
Net Cash from Operating Activities 121.74t.1941 409,354,454 12r.741.794 409,354,456
Cash Flows From Investing Activities
qcqursrtron ol Property, Plant and Equipment (81,978,L72 1224,390,664 (8r,978,L72 1224,390,6641
Inveslment In unquoted snares (14,400,000) 14,400,000
Ner Lasn f tows lrom Investtng Activaties (96,378,1721 (96,378,7721
{.224,390,664) (224,390,664
Sash Flows From Financing Activities

Calls in advance received (16,000) 16,000)
Dividend paid to ordinary shareholders, net of scrip
Share capital issued 184,091,000 184,091.000
Finance Expenses 195,508,095) (2r8,224,463\ 195,508.095 (21,8,224,463
Proceed /(Repayment) of Borrowings 205,508,852 6,509,061 20s,508,852 6,509,061
Net Cash flows from financing activities L94,091,757 127r,73L,402 194,09L,757 (2tL,73L,4021
Net Increase /(decrease) in cash and cash equivalents 7s,972.390 (26,767,611 75,972.f90 (26,767,6trl
Lasn and casn equtvatents at beganninq of vear L9,798,666 46,566.277 19,298,666 46,066,277
Effect of exchange rate changes on cash & cash eouivalents
CafljnLq4h Equivalents at the end of the vear 9s,777,Os7 19,798,666 95,277,0s7 19.298.656
Significant Accounting policies and Notes to the Accounts is an integral part of Financial statement.
As per our rep,prt of even date
Auditor
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Binayak Pokhrel Abhis Bik\aft Shah "oD-i"l
Prasad Dhakal
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Yagya Raj Bhatta, FCA

Account Manager Gene ManEger Proprietor
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Bhatta & Company
Chartered Accountants'
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Hem Rf,j Dhakal
Uttam Kumar Nepal
Director Director Director
Date:20/L2/202L
Place: Kathmandu
Chandragiri Hills [imited
Kathmandu, Nepal
Consolidated Statement of Other Comprehensive Income
For the year ended 15th July 2021
Profit for the Year
Items that will be reclassified to Income Statement:

lnvestment in 5u
Investment in Unquoted Shares
Deferred Tax lmplication of acutuarial gain/ (losses
Items that mav be reclasssfied ntlV to income statement:
-for-sale-investments:
valuation gains taken to
Reclassfied to income statement
sive income for the vear net of taxation
Signiticant Accounting policies and Notes to the Accounts is an integral part of Financial statement.
report of even date
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Chairman
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yagya Raj Bhatta,
Proprietor .
FCA
Bhatta & Cdmpany

Ambika'Prasad Poudel .m Uttam Kumar Nepal

Director
Date:20/12/2O21
Place: Kathnrandu
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Significant Accounting Policies and Notes to the Accounts for the Year ended 15 July 2O21

Kathmandu, NePal
Significant Accounting Policies and Notes to Accounts
Fiscal Year 2O2Ol2r (2077 /781
L. General Information of Reporting Entity

Chandragiri Hills Limited (herein referred as "Company"), previously named as Kathmandu
Funpark Pvt. Ltd., was incorporated as Pvt. Ltd Co. at the office of company registrar having its
registration no 64533/067/067 with registered address as Panipokhari, Kathmandu, Nepal. Later,
the company has been converted into Public Limited Company having its registration no
124325/ 07 o/07 1 with effect from 207 r/ 03 / 32.
The authorized capitalof the Company is Rs.2,000,000,000 and lssued capital of the company is
Rs. 1,53,40,91,000 and paid-up capital is Rs 1,53,40,91,000 as on 2078/03/31'.

The Company has started its operation from Shrawan 24, 2073. The company is principally
engaged in operation for cable car, resort, restaurants, branded shop and souvenir shops.
The Company issued 18,40,910 ordinary shares of NPR 1O0 to the general public, during the
fiscal year 2077.78, which is 12% of its paid-up Capital. Of the L2% of issuance, 2%o i.e.,3,40,9I0
shares of NPR 100 each, were allotted to the public staying in the project affected area. The
shares were listed in Nepal Stock Exchange Limited and share trading commenced from 25'h of
Magh 2077 BS with symbol CGH.
The consolidated financial statement of company as at fiscal year ended L5th Ju|y,2021,
comprises the company and its subsidiaries (together referred to as the "Group" and individually
referred to as "standalone")
2. Basis of Preparation
2.1 Statement of Compliance
Standalone Financial Statements of the Company comprises of financial Statement of the

Company has been prepared in accordance with Nepal Financial Reporting Framework (NFRS)
recommended by the Accounting Standards Board of Nepal and pronounced by the Institute of
Chartered Accountants of Nepal which confirm, in material respect, to International Financial
Reporting Standards (IFRS) as issued by the InternationalAccounting Standard Board (IASB).
The consolidated financial statements of the Group comprise of Consolidated Statement of

Financial Position, Consolidated Statement of Profit or Loss, Consolidated Statement of Other
Comprehensive Income, Consolidated Statement of Cash Flows and Consolidated Statement of
Changes in Equity. Consolidated Financialstatements have been prepared as per Nepal Financial
Reporting Standards - NFRS L0 on "Consolidated Financial Statements". The consolidation
principles are unchanged as against the previous year. The consolidated statements comprise of
items of Multipokhara Development Pvt. Ltd. and Chandragiri Hills Paragliding Ltd.
NFRSs so applied confirm in all m pect, to International Financial Reporting Standards

(IFRS) as issued by the Internatj Standards Board (IASB).
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Significant Accounting Policies and Notes to the Accounts for the Year ended 15 luly 2O21-
New reporting standards in issue but not yet effective
A number of new standards and amendments to the existing standards and interpretations have
been issued by IASB after the pronouncements of NFRS with varying effective dates. Those
become applicable when ASB Nepal incorporates them within NFRS. All the standards and
pronouncements as recommended by ASB Nepal has been applied.
Carve-Outs:
The company has also referred to the Carve-outs as issued by The Institute of Chartered
Accountants of Nepal as on Bhadra 03,2077 on impracticability to determine transaction cost
of all previous years which is part of effective interest rate where, it is mentioned that the
calculation of effective interest rate shall include allfees and points paid or received, unless it is
immaterial or impracticable to determine reliably. The Company has opted for this Carve-out,
details of which has been mentioned in accounting policies of long-term borrowing.
2.2 Accounting Conventions
The Financial Statements have been prepared on the historical cost convention except for
certain financial instruments. which are measured at their fair values.
Fair value is the price that would be received to sell an asset or paid to transfer a liability in an
orderly transaction between market participants at the measurement date, regardless of
whether that price is directly observable or estimated using another valuation technique.
Management regularly reviews significant unobservable inputs and valuation adjustments.
lf third party information, such as market quotes or pricing services, is used to measure fair
values, then the management assesses the evidence obtained from the third parties to support
the conclusion that these valuations meet the requirements of the approved accounting
standards as applicable, including the level in the fair value hierarchy in which the valuations
should be classified.
When measuring the fair value of an asset or a liability, the Company uses market observable
data as far as possible. Fair Value for measurement and/ or disclosure purposes in these Financial
Statements is determined on such a basis, except for, measurements that have some similarities
to FairValue but are not FairValue, such as Net Realizable Value in NAS 2 "lnventories" orValue
in use in NAS 36 "lmpairment of Assets". In addition, for Financial Reporting purposes, FairValue
measurements are categorized into Level L, or 2, or 3 based on the degree to which the inputs to
the Fair Value measurements are observable & the significance of the inputs to the Fair Value
measurement in its entirety, which are described as follows:
. Level 1- Inputs are quoted prices (unadjusted) in active markets for identical Assets or
Liabilities that the entity can access at the measurement date;
. Level 2 - Inputs are inputs, other than quoted prices included within Level 1, that are
observable for the Asset or Liability, either directly or indirectly; and
. Level 3 - Inputs are unobservable inputs for the Asset or Liability.
q/ e2of34
Chandragiri Hills timited
Significant Accounting Policies and Notes to the Accounts for the Year ended t5 luly 2O2]-
The financial statements have been prepared on a going concern basis where the accounting
policies and judgements as required by the standards are consistently used and in case of
deviations disclosed specifically.
2.3 Reporting Period and approval of Financial Statements

The Company/Group prepares financial statement in accordancc with thc Ncpalese financial
year using Nepalese calendar.
The corresponding dates for Gregorian calendar are as follows:
rarticulars Vepafe5e Calendar Date I Period iregorian Calendar Date / Perioc
3omparative SFP* Date 31" Ashadh 2077 15th July 2020
lomparative reporting L't Shrawan 2076 - 31't Ashadh 17th July 201,9 - 15th iuly 2020
leriod 2077
:irst NFRS SFP* Date 3L't Ashadh 2078 15th July 2021
\FRS reporting period L't Shrawan 2077 - 31$ Ashadh 16th July 2020 - 15th July 2021
2078
+ SFP Statement of financial position
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The accompanied Financial Statements have been adopted by the Board of Directors on its
board meeting held on 5th Poush 2078 and have been recommended for approval by
shareholders in the L2th Annual General Meeting held on 29th poush 2078.
2.4 Functional and Presentation Currency

The financial statements are denominated in nearest Nepalese rupees, which is the Functional
and presentation currency of the company.
2.5 Presentations
For presentation of the Consolidated Statement of Financial Position, assets and liabilities have
been bifurcated into current and non-current, by their respective maturities and are disclosed in
the notes. All assets apart from Property Plant and Equipment, Intangible assets, non-current
deposits and Deferred Taxes assets are taken as current assets unless specific additional
disclosures are made in the notes for current and non-current distinction. All liabilities apart
from Long Term loan, Deferred Tax Liability and Net Defined Benefit Obligations are taken as
current liabilities unless specific additional disclosures are made in the notes for current and
non-current distinction.
The Statement of Profit or Loss has been prepared using classification "by nature" in accrual
basis. The cash flow from operation within the Statement of Cash Flows has been prepared using
the Indirect ltrlethod.
2.6 Accounting Convention, Estimates, Assumptions and Judgments \"-

The management while complying with reporting standards, makes critical accounting judgement
in respect of items where the choice of specific policy, accounting estimates or assumptions to be
followed could materially affect the company's reported financial position, results or cash flows.
Actual results may differ from these estimates.
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Chandragiri Hills Lirnited
Significant Accounting Policies and Notes to the Accounts for the Year ended t5 luly 2027
Where accounting policy is generally applicable to the specific item, the policy is described with
that relevant note. The Company, as per the requirements of NFRS, exercises judgement in
making accounting estimates. Estimates and underlying assumptions are reviewed on an ongoing
basis. Revisions to estimates are recognized prospectively. Some of the major areas where
various assumptions and estimates are significant to the Company's financial statements or
where judgment was exercised in application of accounting policies are as follows:
1. Estimate of useful life of property, plant and equipment

2. Estimate of useful life of intangible assets
3. Provision for taxation
2.7 Change in Accounting Policies

The company applies its accounting policies consistently from year to year except where
deviations has been explicitly mentioned.
2.8 Materiality and Aggregation

ln compliance with NAS 1 "Presentation of Financial Statements" each material class of similar
items are presented separately in the Financial Statements. ltems of dissimilar nature or
functions are presented separately unless they are immaterial.
2.9 Discounting
Discounting has been applied where assets and liabilities are non-current and the impact of the
discounting is material. Since impact of discounting in our financial is immaterial, we haven't
applied discounting.
2.10 Offsetting
Financial Assets and liabilities are offset and the net amount presented in the Statement of
Financial Position when and only when, the company has a legal right to set off the amounts and
it intends either to settle them on a net basis or to realize the assets and settle the liabilitv
simultaneously.
Income and expenses are presented on a net basis only when permitted under NFRS, or for gains
and losses arising from a group of similar transactions such as in the company's trading activity.
2.11 Limitation of NFRS lmplementation

lf the information is not available and the cost to develop would exceed the benefit derived,
such exception to NFRS lmplementation has been noted and disclosed in respective section.
3. Summary of Significant Accounting Policies

The principal accounting policies adopted in the preparation of these financial statements are
set out below. These policies have been consistently applied unless otherwise stated.
3.1 Going concern

The management have made an assessment of the Company's ability to continue as,,a going
concern and satisfied that it has the resources to continue its business for the foreseeable
future. Furthermore, Management is not aware of any material uncertainties that may cast \U,
significant doubt upon the Company's ability to continue as a going concern and they do not
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Significant Accounting Policies and Notes to the Accounts for the Year ended 15 July 2021
3.2 Effect of changes in foreign exchange rate

The company has a policy of converting the foreign currency transactions into functional
currency using the exchange rate prevailing at the date ofthe transaction.
Monetary assets and liabilities denominated in foreign currency are translated into the reporting
currency of the company using the rates prevailing on the reporting date. The resulting gain or
loss due to translation is taken to profit or loss. Non-monetary assets are recorded using the rate
of exchange prevalent as on the date of initial recognition.
3.3 Property, Plant and Equipment

Recognition
Property, Plant and equipment are stated at cost of acquisition less accumulated depreciation
and accumulated impairment provisions, if any when it is probable that future economic
benefits associated with the item will flow to the Company and it can be used for more than one
year and the cost can be measured reliably. All Property Plant and Equipment are initially
recorded at cost. Cost includes the acquisition cost or the cost of construction including duties
and non-refundable taxes, expenses directly related to bringing the asset to the location and
condition necessary for their intended use and in the case of qualifying assets, the attributable
borrowing costs.
Subsequent costs are included in the asset's carrying amount or recognized as a separate asset,
as appropriate, only when it is probable that future economic benefit associated with the item
will flow to the Company and the cost of the item can be measured reliably. The carrying
amount of any component accounted for as a separate asset is derecognized when replaced. All
other repairs and maintenance are charged to profit or loss during the reporting period in which
they are incurred.
Freehold land and building have been measured at fair value as its deemed cost.
Depreciation
Depreciation on property plant and equipment other than freehold land i.e., the Company's
freehold building and machinery, vehicle and other assets is provided on 'Written Down Value'
based on estimated useful life estimated by the management.
The assets useful lives and residual values are reviewed at the reporting date and the effects of
any changes in estimates are accounted for on a prospective basis. Depreciation on
addition/deletion to Property plant and Equipment is calculated day wise basis. The estimated
useful lives of material asset categories and their depreciation rates on written down value
method basis are as follows:
s.N PPE Description Estimated Useful Life (years)
1. Land
2 Parking & Access Road 30
3 Buildine 30
Resort Land & Site Development 30
5 Computer & Peripherals 10
6 Other Office Equipment 10
7 Fu rn itu re 10
8 Vehicle 10
9 Kitchen Equipment 10
10 Plant & Machinery 25 \-
u, Leasehold lmprovement 10
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De-recognition of Property plant and Equipment

An item of property plant and equipment is derecognized upon disposal or when no future
economic benefits are expected to arise from the continued used of the asset. Any gain or loss
arising on the disposal or retirement of an item of property, plant and equipment is determined
as the difference between the sales proceeds and the carrying amount of the asset and is
recognized in the Statement of Profit or loss.
3.4 lntangible Assets
Intangible assets are initially recognized at cost. Subsequently intangible assets are carried at
cost less accumulated amortization and accumulated impairment losses. An intangible asset is
recognized if it is probable that the expected future economic benefits that are attributable to
the asset will flow to the Company and its cost can be measured reliably. Internally generated
intangible asset, excluding capitalized development costs are not capitalized and the related
expenditure is reflected in Statement of Profit or loss in the year in which the expenditure is
i ncu rred.
Amortization of Intangible Assets:
The useful lives of intangible assets are assessed to be either finite or indefinite. An intangible
asset shall be regarded as having an indefinite useful life when, based on an analysis of allof the
relevant factors, there is no foreseeable limit to the period over which the asset is expected
generate net cash inflow for the entity.
Amortization is recognized in Statement of Profit & Loss on straight line method (SLM) over the
estimated useful life of the intangible assets from the date that it is available for use since this
most closely reflects the expected pattern of consumption of the future economic benefits
embodied in the asset. The amortization period and the amortization method for an intangible
asset with a finite useful life are reviewed at least at each financial year end. The amortization
expense on intangible assets with finite lives is recognized in the Statement of Profit & Loss.
Useful Life of Intangible Assets based on SLM is categorized as stated below:
List of Asset CatCgories Useful life (Years)

Softwa re/Application 6.67
3.5 lmpairment of Non-Financial Assets (excluding Inventories, and deferred tax assets)
The non-financial assets of the organization which includes Property Plant and Equipment,
Inventories etc. are subject to impairment assessment if there is any indication that the carrying
amount may exceed the recoverable value of the assets. Such impairment assessment of assets
is done on the basis of cash generating unit or if not possible on individual assets.
An impairment loss is recognized in the Statement of Profit or Loss to the extent, asset's carrying
amount exceeds its recoverable amount.
Here the recoverable amount is higher of an asset's fair value less cost of disposal & value in use.
Whereas Value in use is based on the estimated future cash flows, discounted to thei; present
value using pre-tax discount rate that reflects current market assessments of the time value of
money and risk specific to the assets.
Since there is no such indication during the end of the financialyear that the carrying amount of \r\_-
the financial assets is more than its recoverable amount, impairment has not been charged.
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Significant Accounting Policies and Notes to the Accounts for the Year ended L5 luly 2O2t
3.6 lnvestment
I nvestment in subsidiary
Subsidiaries are entities that are controlled by the Company. The company is presumed to
control an entity when it is exposed or has rights to variable returns from its involvement with
the entity and has the ability to affect those returns through its power over the entity. At each
reporting date, the company re-assess whether it controls an entity if facts and circumstances
indicate that there are changes in one or more elements of control mentioned above.
The financial statement of subsidiaries is fully consolidated from the date on which control is
transferred to the company and continue to be consolidated until the date when such control
ceases, The Financial Statements of the Company's subsidiaries are prepared for the same
reporting year as per the Company, using consistent accounting policies.
There is no indication of impairment during the financial year.
Investment in Debt and equity securities

Investments held for trading are classified as current assets and are stated at fair value, with any
resultant gain or loss recognised in the Statement of Profit or Loss. Where the company has
intent and ability to hold to maturity, they are stated at amortised cost less impairment losses.
Other investments held by the company are classified as being available-for-sale and are stated
at fair value, with any resultant gain or loss being recognised in the profit or loss statement or
Statement of Other Comprehensive Income. However, such decision is irrevocable.
All the investment of the company has been classified as held to maturity and has been
recognized as financial assets with Fair value through Other Comprehensive Income.
There is no indication of impairment during the flnanclal year.
3.7 Inventories
Inventories are carried at the lower of net realizable value or cost. Cost comprises of all cots of
purchase, cost of conversion and other costs incurred in bringing the inventories to their present
location and condition. Cost is measured using first in first out method. Net realizable value is
the estimated selling price in the ordinary course of business less the estimated cost of
completion and the necessary estimated expenses.
3.8 Financial lnstruments:

3.8.1 FinancialAssets
Financial asset is any asset that is:
a) Cash
b) An equity instrument of another entity;
c) A contractual right:
i) To receive cash or another financial asset from another entity; or
ii) To exchange financial assets or financial liabilities with another entity under conditions
that are potentially favorable to the entity; or
d) A contract that will or may be settled in the entity's own equity instruments and is:
i) A non-derivative for which the entity is or may be obliged to receive a variable number of
the entity's own equity instruments; or
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ii) A derivative that will or may be settled other than by the exchange of a fixed amount of
cash or another financial asset for a fixed number of the entity's own equity instruments
The company's principal financial assets comprise of assets that held at fair value, trade and
other receivables as well as advances.
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A financial liability is any liability that is:

a) Contractual obligation:
(i) To deliver cash or another financial asset to another entity; or
(ii) To exchange financial assets or financial liabilities with another entity under conditions
that are potentially unfavorable to the entity; or
b) a contract that will or may be settled in the entity's own equity instruments and is:
i) a non-derivative for which the entity is or may be obliged to deliver a variable number of
the entity's own equity instruments; or
ii) a derivative that will or may be settled other than by the exchange of a fixed amount of
cash or another financial asset for a fixed number of the entity's own equity instruments.
While the company's financial liabilities consist of long-term borrowings, short term borrowings
and trade payables.
Recognition and measurement
The Company recognizes financial assets and financial liabilities initially at its fair value plus in
the case of Financial Assets and financial liabilities not "at Fair value through Profit or Loss",
transaction costs that are attributable to the acquisition or issue of the financial assets and
financial liabilities. The transaction costs of FinancialAssets carried "at Fair Value through Profit
or Loss" are expensed in the Statement of Profit & Loss. The advances given to various parties,
have been classified as non- financial assets in current financial statements for fair presentation.
Subsequent Measurement of Financial Assets

i) Financial Assets measured at amortized cost
A financial asset is measured at amortized cost if it is held within a business model whose
objective is to hold the asset in order to collect contractual cash flows and the contractual terms
of financial asset give rise on specified dates to cash flows that are solely payments of principal
and interest on the principal amount outstanding. These instruments are recognized at
amortized cost using effective interest rate. This classification includes trade receivables,
advances and deposit. These instruments are mostly non-interest bearing and where interest
component is present the implicit interest rate approximates effective interest rate. Therefore, it
is assumed that the carrying amount represents the amortized cost of the assets.
ii) Financial Assets at fair value through other Comprehensive Income (FVTOCI)
A financial asset is measured at Fair value through other comprehensive income if it is held
within a business model whose objective is achieved by both collecting contractual cash flows
and selling financial assets and the contractual terms of financial asset give rise on specified
dates to cash flows that are solely payments of principal and interest on the principal amou!!.
outstanding. These financial assets are measured at fair value and changes are takeri to
statement of other comprehensive income. This classification includes equity securities held to
maturity
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iii) Financial Assets at Fair value through profit or loss (FVTPL)
A financial asset which is not classified in any of the above categories is measured at FVTPL.
These financialassets are measured at fairvalue and changes are taken to state
loss. This classification includes quoted or unquoted equity securities held for
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Significant Accounting Policies and Notes to the Accounts for the Year ended tS luly 2O2L
Subsequent Measurement of financial liabilities

After initial recognition, financial liabilities that are not carried at fair value through profits or
loss are subsequently measured at amortized cost using the effective interest method. Gains and
losses are recognized in the Statement of Profit or Loss when the liabilities are derecognized,
and through amortization process.
All financial liabilities held by the company are classified as financial liabilities held at amortized
cost using effective interest rate. Financial liabilities held by the company are both interest
bearing and non-interest bearing.
The non-interest-bearing instruments'carrying value represents the amortized cost. For interest
bearing financial liabilities which comprises of the bank loans, interest charged by the bank
approximates effective interest rate and the rate is considered for calculation of amortized cost
of liability and the finance cost. The effect of initial charges and its impact on effective interest
rate is considered not material and the carrying value is considered to approximate the
amortized cost.
De-recognition
The Company De-recognizes financial assets when the right to receive cash flows from the assets
have expired or when it has transferred substantially all risks and rewards of ownership. lf
substantially all the risks and rewards have been neither retained nor transferred and the
Company has retained control, the assets continue to be recognized to the extent of the
Company's continuing involvement. Financial liabilities are derecognized when the obligation
under the liability is discharged, cancelled or expired.
lmpairment of financial assets

At each reporting date the Company assesses whether there is any objective indication that an
asset or a group of financial assets may have been impaired. lf such indication exists, the
recoverable amount is determined. A financial asset or a group of financial assets is impaired
and impairment losses are incurred if, and only if, there is objective evidence of impairment as a
result of one or more events occurring afterthe initialrecognition of the asset (a loss event), and
that loss event (or events) has an impact on the estimated future cash flows of the financial
asset or group of financial assets that can be reliably estimated.
The Company considers the following factors in assessing objective evidence of impairment:
o Whether the counterparty is in default of payments.

o When a counterparty files for bankruptcy, and this would avoid or delay discharge of its
obligation.
o Where the Company initiates legal recourse of recovery in respect of a credit obligatiop rif
the counterpart.
r Where the Company consents to a restructuring of the obligation, resulting in a diminished
financial obligation, demonstrated by a material forgiveness of debt or postponement of L\--
scheduled payments.
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o Where there is observable data indicating that there is a measurable decrease in the
estimated future cash flows of a group of financial assets, although the decrease cannot yet
be identified with specific individualfinancial assets.
Offsetting of Financial I nstruments
The company offsets the financial assets and liabilities, and presents the net amount in the
Statement of Financial Position when and only when, it has a legal right to set off the amounts
and intends either to settle them on a net basis or to realize the assets and settle the liability
simultaneously.
3.9 Trade and other Receivables:

Trade receivables comprises of amounts owed to company by customers. Trade receivables do
not carry any interest and are measured at the carrying amount at which the item is initially
recognized less any impairment losses, i.e., stated at their nominal value as reduced by
appropriate allowances. Such allowances are affected by way of write-downs based on the
estimated irrecoverable amount.
lmpairment of Trade receivables

For allowances, assets with a potential need for a write-down are grouped together on the basis
of similar credit risk characteristics, tested collectively for impairment, and written-down, if
necessary. Estimated irrecoverable amounts are based on the ageing of the receivable balances,
taking previous cases of default into consideration and historical experiences. Since these
receivables are considered good hence no impairment is reflected in the books.
3.10 Cash and cash Equivalent

Cash and cash equivalents have an original maturity of less than three months. These enable the
company to meet its short-term liquidity requirements.
The carrying amount of cash and cash equivalents approximates theirfairvalue. The majority of
company's cash and cash equivalent comprises of call and current deposits that are readily
convertible to a known amount of cash and are subject to insignificant risk of change in value.
These also include cash-in-hand and cheque.
Risk of holding cash and bank balance is the time value of money and the inflationary
devaluation which is not fully off-set by interest earned by those bank deposits.
3.11 Share Capital
Share capital here represents the par value of equity shares issued. The company has classified
Financial Instruments as equity when there is no contractual obligation to transfer cash, other
financial assets or issue available number of own equity instruments. Incremental costs directly
attributable to the issue of new shares have not been deducted from equity.
3.12 Reserves
The reserve includes retained earnings, deferred tax reserve and corporate social responsibility \,N-'
reserve.
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Corporate Social Responsibility

The company has the policy of allocating I% of annual profit as per Section 54 of Industrial
Enterprises Act2O76. Since the company is in the loss during the year 2076.77 no allocation in
CSR is required.
Retained Earnings
Retained earnings include the accumulated profit and loss and amount retained by company
after distribution of dividends.
3.13 Employee Benefits

i) Short Term Obligation
Liabilities for wages and salaries and other allowances, including non-monetary benefits that are
expected to be settled wholly within L2 months after the end of the period in which the
employees render the related service are recognized in respect of employee's services up to the
end of the reporting period and are measured at the amounts expected to be paid when the
liabilities are settled. The liabilities have been categorized under "Other Financial Liabilities" in
the statement of financial position.
ii) Post- employment benefits

Defined Contribution plan:
The Company pays provident contributions in the form of Provident Funds to publicly
administered provident funds as per the local regulations. The Company has no further payment
obligation once contributions have been paid. The Contributions are accounted for as defined
contribution plans and the contribution are recognized as employee benefit expense when they
are due.
Defined benefit plan:

Staff Retirement expenses are measured at their fair value which is carried at present value of
defined benefit obligations. NAS 19- Employee Benefits, requires defined benefit plan to be
calculated using the projected unit credit method with actuarial obligations being carried out at
each Statement of Financial Position. However, analysing the cost involved in actuarial valuation,
the Company has not computed the cost of defined benefits obligation by third party actuary.
The Company has made provision for the same as per Employee Byelaws pertaining to legal
regulation.
iii) Long term employee benefits

Employees have a statutory entitlement to certain months' paid leave or the cash equivalent as
per the Employee Byelaws pertaining to legal regulation. These benefits are included in the long-
term employee benefits and are presented under Net Defined Benefit Obligations by the
Company.
3.14 Provisions, Contingent liabilities and contingent assets

Provisions
The Company recognizes provisions when there is a binding present obligation. This may be
either legal because it
derives from a contract, legislation or other operation of law or tJ\-
constructive because the Company created valid expectations on the part of third parties by
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Significant Accounting Policies and Notes to the Accounts for the Year ended 15 luly 2O2l
outflow of resources will be required to settle the obligation and reliable estimate has been
made for the amount of the obligation. The amount recognized as a provision and the indicated
time range of outflow of economic benefits are the best estimate (most probable outcome) of
the expenditure required to settle present obligation at the reporting date taking into account
the risks and uncertainties surrounding the obligation, non-current provisions are scouted if the
impact is material.
Contingent Liabilities
The Company recognizes contingent liabilities only when there is possible obligation arising from
the past events due to occurrence or non-occurrence of one or more uncertain future not wholly
within the control of the Company or where any present obligation cannot be measured in
terms of future outflow of resources or where a reliable estimate of the obligation cannot be
made. Obligations are assessed on an on-going basis and only those having a largely probable
outflow of resources are provided for.
Contingent Assets
The Company discloses contingent assets where it is possible that future economic benefits will
flow to the Company in the financial statements.
3.15 Long term borrowing

Borrowing that are expected to be settled after 12 months period is recognized in long term
borrowing. lt includes Term loan and vehicle loan received from various banks as long-term
borrowing as per terms of payment mentioned in loan document. The current portion of such
long-term loan is segregated. The discounting rate for the purpose of fair value measurement
closely approximates the effective interest rate. llence, fair value of long-ternr bolrowirrg is i[s
carrying amount. The current maturity portion of term loan for comparative period has been
classified as short term forfair presentation and comparison in current year's financial.
3.15 Short term borrowing

Borrowing that are expected to be settled before 12 months period is recognized in short term
borrowing. The Company has recognized Bride gap loan availed as short-term borrowing as per
terms of payment mentioned in loan document. The estimated fair value of such short-term
borrowing approximates it's carrying amount. The Current portion of long-term loan is also
apportioned in short term loan.
3.17 Trade and other payable

The Company recognizes trade payable for amount payable by the Company for goods
purchased or services availed as a part of business operation. Such amounts are classified as
Trade Payables and are initially recognized at fair value and subsequently measured 4t
amortized cost. The fair value of such trade and other payable is equivalent to their carrying
amount. Hence, Trade and other payables are stated at their cost.
l
3'18
H:il: lT""t:X'r:: at the fair varue of the consideration received or receivabre. Revenue is V
recognized to the extent that it is probable that the economic benefits will flow to the company
and the revenue and associated costs incurred orto be incurred can be reliably
[tr
Revenue comprises of revenue from Ticket, Food & Beverage, Merchandise Goods and Resort
Room Revenue.
Revenue is recognized upon rendering of the service, provided pervasive evidence of an

arrangement exists, tariff/rates is fixed or are determinable and collectability is reasonably
certain.
Revenue from interest is recognized on a time proportion basis using the effective interest rate
method. The Company has considered interest rate of banks as discounting rate.
3.19 Operating Expenses

The company recognizes expenses when obligations are incurred and when the revenue
generated from those expenses are recognized. An expense is the cost of operation that a
company incurs to generate revenue.
Expenses comprises of administrative expenses, personnel expenses, finance charges,

advertisement charges, depreciation and amortization expenses.
3.20 Lease
Leases are classified as finance leases whenever the terms of the lease transfer substantially all
the risks and rewards of ownership to the lessee. All other leases are classified as operating
leases. The lease rentals under such agreement are recognized in the statement of profit or loss
as per the terms of the lease.
The Company recognizes rental expense from operating lease on a straight-line basis over the
term of operating lease. Where the rentals are structured solely to increase in line with expected
general inflation to compensate for lessors expected inflationary cost increases, such increases
are recognized in the year in which such benefits accrue.
3.21 Income Taxes

Income tax expenses represent the sum of the tax currently payable and deferred tax.
Deferred tax
Deferred tax is recognized on temporary differences between the carrying amounts of assets
and liabilities. Deferred income tax is recognized using the statement of financial position and its
tax base. Deferred income tax assets and liabilities are recognized for deductible and taxable
temporary differences arising between the tax base of assets and liabilities and their carrying
amount in the financial statements, except when the deferred income tax arises from the initlal
recognition of goodwill, an asset or liability in a transaction that is not a business combination
and affects neither accounting nor taxable profits or loss at the time of the transaction.
Deferred income tax assets are recognized to the extent that is probable that taxable profit will
be available against which the deductible temporary differences and the carry forward of \
unusedtaxcreditsandunusedtax|ossescanbeutilized.
The carrying amount of deferred tax assets is reviewed at each reporting date an
the extent that it ilnolonger probable that sufficient taxable profits will be avafi
LN
^\ \ O{i $N
or part of the deferred income tax asset to be utilized. The Company has recognized deferred tax
asset/liabilities on the items through which such temporary difference has arisen.
Current tax
Current tax expenses are accounted in the same period to which the revenue and expenses
relate. Provision for current income tax is made for the tax liability payable on taxable income
after considering tax allowances, deductions and exemptions determined in accordance with the
applicable tax rates and the prevailing tax laws. Current tax assets and liabilities can be set off to
the extent enforceable and allowed as per law.
3.22 Segment Reporting

Segment reporting is based on the operating (business)segments of the Company. An operating
segment is a component of the company that engages in business activities from which it may
earn revenues and incur expenses, including revenues and expenses that relate to transactions
with any of the company's other components.
The Company is required to report on its Operating Segments in a manner consistent with the
internal reporting provided to the chief operating decision maker (CODM) as defined by NFRS 8,
"Operating Segment".
' ):::t' Seemerit t Sbgment 2 l
ra"*;;, iT, T16 {,

sq : tilww
',:t,il|il| 2077h8' 2071n8'
Revenue "
Total Revenue 143,647,022 84,958,609 728,605,630

Inter- segmental Revenue
Total Revenue from External customers t43,647,O22 84,958,508 229,605,630
Discontinued ooerations
Revenue per consolidated statement of
t43,647,O22 84,958,608 228,605,630
Comprehensive Income
Depreciation & Amortization 45,1,4I,580 79,21_5,993 124,357,573
Segment profit
(32,386,151) (1,9,t54,4681 (51,540,619)
lmpairment of Assets
Share-based payments
Share of profits in associates
Finance expense 195,509,095
Ftnance Income 809,962
Segment profit included in discontinued
operations
Profit before tax and discontinued operations

(246,238,7521
v\---
nd
Segment I i
$;ilrri Total
Cable Car Resort
?a:u178 2077178 2077178
Additions to non-current assets

(54,390,539)
Reportable segment assets

Fixed Asset 1,767,31,4,582 L,348,530,5r2 3,115,845,093
lnvestment in associates 1,80,500,000
Available for sale financial assets
Derivative Financial assets
Tax assets 404,764,392
Head office property
Total assets 3,7O1,109,495
Reportable segment liabilities

Loans and Borrowings (excluding leases and
2,432,842,949
overd rafts)
Defined benefit pension scheme 5,496,861
Derivative Financial liabilities
Deferred tax liabilities
Employee benefits
Other unallocated and central liabilities !4L,09g,407
Total liabilities 2,579,428,217
4, Notes to account
4.1 (A) Property and Equipment
The Company has applied the Cost Model of accounting for Property and Equipment and those
policies have been consistently applied for all its Property and Equipment to all the periods
presented.
All categories of Property and Equipment are initially recorded at cost. Property and Equipment
are subsequently measured at historical cost less depreciation and impairrnent losses. Historical
cost includes expenditure that is directly attributable its acquisition.
Standalone
(Amount In NPR)
Disposals
Property PIant and Balance ai on Additiohs ,'.', ' Balanceias'on,
durini the
Equipment tsi/oilziio ctorine,,,,,J,., v;a,t :: : :, ':. L5lO7l2.O2r",,
,
f€Er. l ,..;it ,
At Cost
Land 357,057,388 357,O57,388
Building L,392,4tL,8L4 33,445,131 7,193,757 L,424,663,199 \*-
Leasehold Properties 1.99,470 199,470
.y
n
N/ryb ffirsorga
Significant Accounting Policies and Notes to the Accounts for the Year ended t5 luly 2O2t
Dlsposals
Property Plant ahd Balance as on Addltlons Balance as on
during the
Equipment , iL
tsloTl2o2o during the year
year
1510712021.
Computer a nd Accessories 49,883,613 292,666 50,176,280

Vehicles 42,41,1,,096 42,411,,096
Furniture & Fixture 278,529,L89 78,477,927 297,OO1,11,6
Machinery 770,901,861 1,2,507,088 783,408,949
I Kitchen Equipment 36,640,553 2,1,98,463 38,839,017
Equipment & Others 64,372,721. 235,22r 92,000 64,515,942
Parking and Access Road 420,874,659 420,874,659
I
CapitalWlP 1,4,759,738 610,075 1s,369,812
Resort And Development 300,LLL,872 l_5,309,108 315,420,980
I
Total 3,728,L53,973 83,069,679 t,295,757 3,809,937,996
I
Depreciation
Land
I Building 133,821,388 42,427,106 176,248,493

Leasehold Properties 799,470 (0) 1,99,470
Computer and Accessories t6,740,2L4 3,329,211, 20,069,425
I Vehicles L4,861,,L87 2,754,99r 17,616,177
Furniture & Fixture 38,746,300 25,1,25,525 63,87L,825
Machinery 267,502,690 20,470,428 287,973,1,r7
I
Kitchen Equipment 7,313,464 2,9g2,Ogg 10,295,563
Equipment & Others l-9,638,854 4,484,458 24,I23,3I3
I Parking and Access Road 67,177,8O4 11,,789,895 78,967,700
CapitalWlP
Resort And Development 8,992,675 10,097,306 19,089,9g1
Total 574,994,045 L23,46t,0t9 698,455,064
Net Book Value

Land 357,057,388 357,057,388
Building L,258,59O,427 (8,981,975) 1_,193,757 I,248,414,695
Leasehold Properties (0) 0 (0)
Com puter a nd Accessories 33,143,399 (3,036,545) 30,106,954
Vehicles 27,549,9rO (2,754,991,) 24,794,9I9
Furniture & Fixture 239,782,889 (6,653,599) 233,129,291
Machinery 503,399,17r (7,963,340) 495,435,93r
Kitchen Equipment 29,327,O90 (783,636) 28,543,454
Equipment & Others 44,733,867 (4,249,237) 92,000 40,392 j:630
Parking and Access Road 353,696,855 (11,799,995) 341,906,960
CapitalWlP 1,4,759,738 610,075 1,5,369,9r2
Resort And Development 291,,1,19,197 5,21"L,802 296,33Q,999 \
Net Book value 3,t53,L59,929 (40,391,340) t,285,7W ffiq1r,+82,832

\<
o :- |;
*lio or Ea
Group
(Amount in NPR)
Property Plant and

Additions Disposals
Balance as on Balance as on
during the during the
Equipment At Cost tsloTl2o2o tsloTl2o2t
year year
Land 532,957,399 532,9s7,388
Building 'J,,392,471,,81,4 33,445,r31 L,193,757 1,,424,663,1,99
Leasehold Properties 799,470 199,470
Computer and Accessories 49,883,613 292,666 50,L76,280
Vehicles 42,41,r,096 42,417,096
Furniture & Fixture 278,529,189 1_8,471_,927 297,001-,1L6
Machinery 770,907,861 L2,507,09g 783,408,949
Kitchen Equipment 36,640,553 2,r99,463 38,839,0L7
Equipment & Others 64,372,721. 235,221 92,000 64,515,942
Parking and Access Road 420,874,659 420,874,659
CapitalWlP 1,4,759,738 610,075 15,369,9r2
Resort And Development 300,1,1,1,,872 15,309,109 31.5,420,980
Total 3,9O4,O53,973 83,069,679 t,285,757 3,985,837,996
Depreciation
Land
Building 133,821,388 42,427,106 176,248,493
Leasehold Properties r99,470 (0) I99,470
Computer and Accessories L6,740,214 3,329,2LL 20,069,425
Vehicles 1,4,86L,1g7 2,754,99]- 17.616.I77
Furniture & Fixture 38,746,300 25,125,525 63,871,,825
Machinery 267,502,690 20,470,429 287,973,L!7
Kitchen Equipment 7,3L3,464 2,982,099 1,0,295,563
Equipment & Others 19,638,854 4,484,459 24,r23,3I3
Parking and Access Road 67,177,804 11,799,995 78,967,700
CapitalWlP
Resort And Development 8,992,675 L0,097,306 19,089,98l.
Total 574,994,045 l23,46l,Otg 598,455,054
Net Book Value

Land 532,957,399 532,957,388
Building L,258,59O,427 (8,981,975) r,193,757 1,,248,4I4,695
Leasehold Properties (0) 0 (0)
Com puter and Accessories 33,L43,399 (3,036,545) 30,106,954.
Vehicles 27,549,9r0 {2,754,9911 24,794,979
Furniture & Fixture 239,782,999 (6,653,599) 233,r29,291
Machinery 503,399,171 (7,963,340) 495,435i83!
UL\-
Kitchen Equipment 29,327,09O (783,636) 28,543,454
Equipment & Others 44,733,967 (4,249,237], 92,O00 40,392,630
@
r&d
F\
tuilkfl of sq
Additlons Disposals
Prbperty Plant and Balance as on Balance as on
during the durlng the
Equipment At Cost tslo7l2o20 ,,,,.,,y€Bf year
L5/07l2'2t
Parking and Access Road 353,696,955 (11,789,895) 341,906,g60
CapitalWlP 1,4,759,738 610,07s 15,369,8r2
Resort And Development 291,,1I9,I97 5,2r1,802 296,330,999
Net Book value 3,329,O59,929 (40,391,340) 1,285,757 3,287,382,932
4.1 (B) Intangible Asset
lntangible assets are initially recognized at cost. Subsequently, intangible assets are carried at
cost less accumulated amortization and accumulated impairment losses if any. An intangible
asset is recognized if it is probable that the expected future economic benefits that are
attributable to the asset will flow to the Company and its cost can be measured reliably.
(Amount In NPR)
Group Stahdalone
Particular
tsl07l2a27 L5lO7l2O2O tsl07l2,o2L t5lo7/2020
Software 4,362,262 5,064,566 4,362,262 5,064,566
4.2 (Al Investment in subsidiary

The company has investment in following subsidiaries. These investments have been made in
unlisted companies and are recorded at cost or market value whichever is lower.
(Amount in NPR)
Group Standalone
Investment in subsidiarv 7lt5l2o2t I tlslzozo 7ltsl202L '7lLsl2OzO
Multipokhara Development Pvt. Ltd. 180,000,000 180,000,000
Chandragiri Hills Paragliding Ltd. 500,000 500,000
Total 180,500,000 180,500,000
4.2 (Bl Other Investment
Other investment comprise of investment in a company for a new project.

(Amount in NPR)
Group Standalone
Investment in others 7li5l2o2l 7lLs12020 7i151202r 7lLsl2020
LumbiniCable Car Pvt. Ltd. 28,800,000 1,4,400,000 28,800,000 14,400,000
Total 28,800,000 14,400,000 28,800,000 14,400,000
4.3 Deferred Tax Assets
Deferred Tax Assets and liabilities are recognized for the future tax consequences
difference between the carrying values of assets and liabilities and their respective
of timing
tax .bases,
W
and operating loss carry forward. Deferred tax assets and liabilities are measured using the
enacted or substantively enacted tax rates at the reporting date. ssets are '1
e
G
f,,",,.nn
recognized only to the extent there is reasonable certainty that the assets can be realized in
future. Deferred tax assets are reviewed at each balance sheet date and appropriately adjusted
to reflect the amount that is reasonably/virtually certain to be realized.
(Amount in NPR)
Group Standalone
Deferred Tax (Asset)/ Liability
7lLsl202t 7/tsl202o 7lL'l202t 7/1512020
Deferred Tax Asset
Balance at the beginning of the Year 85,427,172 24,888,t95 85,421,,172 24,888,I95
Provision/ Release of timing
68,607,r74 60,567,2'J,5 68,607,174 6Q,532,977
difference made during the Year
Balance as at the end of the Year L54,083,734 85,455,410 t54,028,346 85,42L,t72
Deferred Tax Liability

Balance at the beginning of the Year 54,967,523 19,009,394 54,967,523 19,009,394
Provision/ Release of timing
95,060,769 35,958,729 95,060,769 35,9s8,129
difference made during the Year
Balance as at the end of the Year L50,028,29L 54,967,523 L50,028,29L 54,967,523
Net Deferred Tax (Asset)/ tiability (4,000,054) (3O,487,8871 (4,000,054) (30,453,549)
Deferred Tax Liability relates to the

following
Temporary difference from Property,
750,'L4L,457 274,837,6t5 75Q,14L,457 274,837,61.5
Plant & Equipment
Temporary difference from
(8,596,212) (8,Os7,r07) (8,596,272) (8,057,1.07)
Employee Benefits
Brought forward Tax Loss (761,545,577) (419,279,942) (761,545,5r7) (419,048,754)
Temporary Difference (20,000,272) (752,439,434) (2O,O00,272l. (L52,258,2461
Tax@ 20% (4,000,054) (3O,487,8871 (4,000,054) (30,453,649)
Deferred Tax lncome / (Expense)
26,452,932 (24,609,086) 26,453,595 (24,574,8481
recognized during the year
4.4 Non-Current Deposits

These include advances and deposits paid as security.
(Amount in NPR)
Group Standalone
Non- current deposits
7lLsl202L 7lts12020 7hsl202r 7lt5l2o2o
Deposit - Gas Cylinder 427,O00 427,O00 427,OOO 427,000
Deposit- Water 500 22,624 500.00 22,624
Security Deposit-Water iar Sunshine 22,L24 22,1,24
Security Deposit-DHL 25,000 25,000 25,000 25,000
Security Deposit - Internet 3,000 3,000 3,000 3,000
Security Deposit - Nescafe 40,000 40,000 40,000 4o,ooo
Security Deposit - Oxvgen 3,000 3,000 3,000 3,000
Security Deposit - Telephone 4,250 4,250 4,250 4,250
Deposit -lME Pay
t*..-/
46,085 3,627 46,08s 3,627
Total 570,959 528,501 57O,g,Wy. * 528,501
- l
-tL
ry
.A\
(#,L\f, ufl
Significant Accounting Policies and Notes to the Accounts for the Year ended t5 luly 2O2t
4.5 Inventory
Inventory primarily comprise of consumable items, raw materials of restaurants, packaged food
and beverages, maintenance spare parts, etc.
(Amount in NPR)
Group Standalone
Inventory 7ltslzo2t 7lLsl2o2O 7lLsl202t 7lr5l2O2o
Consumable Stock - Kitchen Utensils 97,s20 97,520
Inventory: Food And Beverage 1,0,262,8O8 8,945,557 1,0,262,808 8,945,557
Inventory: General Store 3,276,2L8 4,035,175 3,276,21,8 4,035,r75
Inventorv - Branded Shop 6,1.46,728 7,131,,279 6,1_46,728 7,1,31,,279
Inventorv- Maintenance 3,615,537 3,240,1,21 3,6L5,537 3,240,r2r
Total 23,398,810 23,352,t33 23,398,91O 23,352,733
4.6 Other Non-Financial Assets
Other non-financial assets include prepaid expenses and advance paid against salary. The
historical cost of such assets less any provision for impairment are their carrying amount.
(Amount in NPR)
Group Standalone
Other Non-Financial Assets
rsloTl2o2r tsloT/2020 tsloll202t tsloTl2o2o
Sub - Schedule-1
Advance
Staff Advance 1,486,500 646,999 1,496,500 646,999
Mobilization Advance
Advance for WIP 74,809,405 L04,517,776 74,809,405 104,517,776
MaterialAdvance 23,707,914 27,535,857 23,707,914 27,535,857
Other Advances 305,108 268,108 25,561,597 25,499,906
Party Advance 7,384,937 10,359,601 7,384,937 1"0,359,601
Total !o7,693,864 143,328,341 132,950,353 168,560,139
Advance L07,693,864 1,43,329,341 132,950,353 168,560,139

Prepaid Expenses 4,932,307 4,305,691 4,932,307 4,305,681
VAT Receivable 93,674,664 98,361,354 93,674,664 98,361,354
Total 206,300,835 245,995,375 23t,557,324 27t,227,t73
4.7 Receivables and Current Deposit
Trade and other receivable includes sundry debtors and rent receivable.
(Amount in NPR)
Group Standalone
Receivables & Cuirent DCposit
I5l07l2o2t ti,l07l2o2o Lsl07i202L tsl07l202o
Trade Receivable L5,773,479 18,196,624 L5,773,479 1,8,196,624
Rent Receivable 273,950 273,950 273,950 273,950
Bank Guarantee and margin 930,1_37 536,161 930,137 536,16L
ff
Total 16,977,566 19,006,735 t6,977,569- _19,005,735
of 34
Significant Accounting Policies and Notes to the Accounts for the Year ended t5 luly 2O2]-
4.8 Current Tax Assets

Current tax is based on the taxable profit for the year. The amount of current tax assets/lability
has been booked by netting off advance income tax with the provision for taxation made.
(Amount in NPR)
Group Standalohe
Current Tax Assets/Liabilities 7ltsl2o2t: 7lL5/2O2o 7ltsl202t Tlts/202o
Advance Tax 4,1,99,622 3,557,053 4,1,88,622 3,557,053
Net Current Tax Assets/(Liabilities) 4,L88,622 3,557,053 4,188,622 3,557,O53
4.9 Cash and Cash Equivalent

This includes the cash on hand, cash on vault, balance with other banks and financial institutions
which are used by the company for management of its short-term commitment. The fair value of
cash is it's carrying amount.
(Amount in NPR)
Group Standalone
Cash and cash equivalent 7hilao2t 7ltslzozo 7hs/2021 7lL5l2O20
Cash Balance 782,654 L,O42,9g6 282,654 542,996
Cheque in Hand 185.700 185,700
Eank Balance
Global lme Bank Limited 26,096,722 IO,128,962 26,096,722 L0,I28,962
Citizens International Bank Limited L3,421,,609 1,,536,272 ry:1!21,.609 r,536,272
Prabhu Bank Limited 707,544 273,362 707,544 273,362
Primc Limited
Banl< 10,000 10,000 1_0,000 l_0,000
Machhapuchhre Bank Limited 7,5O0 7,500 7,500 7,500
Siddhartha Bank Limited 7,675,652 3,122,274 7,675,652 3,1,22.274
Mega Bank Limited 72,633 49,336 72,633 49,336
Sanima Bank Limited 3,379 3,379
Sunrise Bank Limited L80,871. 5,000 180,871 5,000
Himalayan Bank Limited 40,507,243 r35,276 40,507,243 r35,276
Nepal Investment Bank Limited 5,160,196 2,577,939 5,1_60,1"96 2,577,939
lme Co-Operative Service Limited 959,353 909,759 9s9,3s3 909,7s9
Total 95,77t,057 L9,798,666 95,27L,O57 L9,298,666
4.10 (A) Share Capital

Financial Instruments issued are classified as equity when there is no contractual obligation to
transfer cash, other financial assets or issue available number of own equity instruments.
Incremental costs directly attributable to the issue of new shares are shown in equity as
deduction net of taxes from the proceeds. Dividend on ordinary shares are recognized in equity
in the period in which they are declared.
(Amount in NPR)
,, 7lt5l2D2L lltsliotQ 1;. ':'t
',1"' [r|e sf :
::i;";",..
;;;",..J Shares " ,
A. Equity Shares
N
Authorized
-/jft\
g
of 34
Significant Accounting Policies and Notes to the Accounts for the Year ended LS July 2O2l
71L612020
tj*
1'
't, , wobf
,,. i At"t"t Shares ,
Equity Shares of Rs. 100 each

with voting rights 20,000,000 2,000,000,000 20,000,000 2,000,000,000
lssued
with voting rights 15,340,910 L,534,091,000 1_5,340,910 l-,534,09L,000
Subscribed and Fullv Paid
with voting rights 1,5,340,910 1,534,091,000 l-3,500,000 L,350,000,000
Calls in Advances
Total 15,340,910 1,534,091,000 13,500,000 1,350,000,000
4.10 (B) Reserve

The reserve includes the reserve brought forward, this year profit, deferred tax reserve and
corporate social responsibility reserve as required by the regulatory body.
(Amount in NPR)
. .,r.
I Group :, Standalone
lslo7I202L t6/07/2O2O rsl07l20ir L6l07ftAao:t
r, ' Amount , ."Amountr ,] Amount Amount
Retained Earnins (495,939,066) (239,624,173) (41,6,409,788\ (r70,171,,036)
Deferred Tax Reserve 4,035,055 30,487,887 4,OOO,O54 30,453,649
Corporate Social
Responsibility Reserve
Total (481,903,011) (209,t36,2841 (4t2,409,733], (t39,7L7,3851
4.Lt Employee Benefit

For defined benefit plans, although the provision forgratuity made as such does not concur with
the prevailing accounting standards i.e. NAS 19 - Employee Benefits, prescribed recognition
criteria is not practically possible. As such, the ad-hoc amount has been provisioned for in the
financial statements. The liability recognized in the Statement of Financial Position is the present
value of the defined benefit obligation less the fair value of the plan assets. Such obligations of
the Company need to be measured on an actuarial basis using the Projected Unit Credit Method.
As per paragraph Q35 of the Conceptual Framework issued by Accounting Standards Board,
reporting financial information imposes cost and it is important that those costs are justified by
the benefits of reporting that information. Viewing the cost constraints involved in actuarial
valuation, the Company has not computed the cost of defined benefits obligation bythird party
actuary. The Company's Statement of Profit and Loss Account is charged with the interest cost,
current service cost, past service cost, benefits paid adjusted with the actuarial gain/loss
recognized for the period.
(Amount in NPR)
Defined Benefit Plan-Liabilities

LsloTl202t
Opening Liability(excluding pre- \r4/\,/
4,839,507 3,389,342 4,939,507
Interest costs
Current Service 2,239,372
,ff
N;t a Group -* \*--

'* ".
Less: Gratuity Paid during the Year 538,590 788,207 538,s90 788,207
Actuarial Gain or Loss
Closing Liabilities 5,496,86t 4,939,507 5,496,867 4,839,5O7
Defined Benefit Plan-Assets
Particular r5lo7/202r rsloTl2o2o tsloTl2o2L rs/07/2020
Opening Assets
Estimated Investment Returns for
the vear
Additional Investment during the
yea r
Withdrawal (payouts during the
year)
I Actuarial Gain or Loss
Closing Assets
I Net Defined Benefit Obligation

Net charges to Statement of Profit
1,L95,944 2,238,373 t,195,944 2,238,373
and Loss Account
I Net charges to Statement of Other
Comprehensive Income
I 4.L2 Long term Borrowing

It has recognized Term loan and vehicle loan received from various banks as long term
borrowing as per terms of payment mentioned in loan document.
I (Amount in NPR)
Group Standal0ne
Long Term Borrowings
I tsloTl2o2u tsloTl2o2o tsl07l2o2L Lslo7l2O20
Term loan I 858,686,885 891,766,995 858,686,885 891,766,995
Term loan ll r,1,32,284,O00 1,,r37,734,000 t,!32,284,000 L,'J,37,734,000
I Term loan lll 402,602,064 402,602,064
Vehicle Loan 9,445,129 9,445,129
Less: Current Maturity of Term
30,296,250 2,000,000 30,296,250 2,000,000
Loan
Total Prabhu Bank Loan- Secured
2,363,276,699 2,036,946,0t4 2,363,276,699 2,036,946,0L4
Loan
4.L3 Short term Borrowing

Short term borrowing include the demand loan and bridge gap loan taken from various financial
institutions.
(Amount in NPR)
Group Standalone
Short Term Aorrowings
rsloT/20d1 I.s107/2o2o Lsl07l202t t5lo7l2o2o
Citizen International Bank Ltd.-BG 188,388,093 188,388,083
Prabhu Bank Loan- Demand Loan 39,270,O00 39,270,O00 vW
Add: Current Maturity of Term Loan 30,296,250 2,000,000 30,296,250 2,000,000
Total 69,566,250 190,399,093 69,566,250 190,389,093
-N.,--; W
Significant Accounting Policies and Notes to the Accounts for the Year ended LS luly 2O21-
4.t4 Trade and other Payable

The Company recognizes trade payable for amount payable by the Company for 'goods
purchased or services availed as a part of business operation. Other payable includes payable to
various vendors for the goods and services availed. Retention money is held to enable the
completion of various services on time.
(Amount in NPR)
Group Standalone
Tiade and other payable
rsloTl2o2L LsloTl2O2O Lslo71202L tsloTl2o2o
Trade Payable 1,6,846,91,5 23,744,964 16,846,915 23,722,364
Other payable 20,352,9I5 44,497,L59 20,337,5L5 44,497,I59
Local Charges L,765,520 5,606,663 L,765,520 5,606,663
CIT Payable/ Provident Fund Payable 180,298 2,790,771 r"80,298 2,I90,777
Leave Encashment Payable 3,185,481 3,2L7,600 3,185,481 3,217,600
Salary Payable r,994,700 3,809,730 L,994,70O 3,808,730
Retention money 61,,231,,71,9 59,503,149 6'J,,231,,719 59,503,149
Service Charge 2,505,545 830,531 2,505,545 830,531
Other payable 3,594,493 19L,961 3,594,493 Lgt,961
Director Payable 66,934,088 63,606,038 26,81.6,0OO 23,516,000
Accrued Interest L07,336,930 107,336,g30
TDS on Contract and Service 'J,51,799 2,O72,177 148,499 2,063,477
TDS on Rent 5,500 57,268 5,500 57,268
TDS on Salary 2,121,,1,40 1,416,589 2,r21,1,40 1,41,6,589
SST liabilities 355,082 r32,gg5 355,082 r32,gg5
Total 18L,225,195 3t8,213,524 L4t,O88,407 278,A92,L95
4.LS Revenue from operations

Company's revenue included revenue from ticket sales of cable car, food and beverage sold at
restaurants, sales of merchandise goods and revenue from resort.
(Amount in NPR)
Group Stand Alone
Operation Income
7lLsl212r 7lls12020 7ltslzozL Tltslzoio
Revenue from Ticket 112,744,408 280,3r0,437 Lr2,744,408 280,31O,437
Food & Beverage 19,935,810 66,950,774 19,935,810 66,950,774
Merchandise Goods 1,384,L55 g,2gg,t27 L,384,155 8,299,1,27
Other Operating Revenue 2,925,843 7,098,851 2,925,843 7,098,951
Resort Revenue 84,9s8,608 50,424,233 84,958,608 50,424,233
Sub-Schedule I
Resort Revenue
Room Revenue 47,124,962 28,406,605 47,124,962 28,406,605
Food & Beverage 37,610,832 21,857,504 37,610,832 21,857,504
Other Revenue 222,81_4 1,60,124 222,874 160,L24
Sub Total Resort Revenue 84,958,608 50,424,233 84,958,608 50,424,233
Total 221,948,924 4t3,083,421 221,948,824 4 1
-v -N
4.L6 Operationexpenses
Operation expenses (cost of goods sold) of the Company include direct cost attributable to
earning of operational income. lt includes purchase cost of foods and beverages, merchandise
goods, housekeeping expenses and other directly attributable expenses, the details of which is
shown below:
(Amount in NPR)
Group Stand Alone
Cost of Material Consumed
7lLsl202r 7hsl2ozo 7lLsl202t 7l15l2o20
Cost of material consumotion
(a) Food & Beverage
Opening Stock 8,945,557 6,953,250 8,945,557 6,953,250
Direct Cost 27,221,221 48,966,649 27,22L,22L 48,966,648
36,766,778 55,919,899 36,t66,778 55,919,899
Less : Closing Stock 10,360,328 8,945,557 1,O,360,329 8,945,557
Cost of Food & Beverages 25,806,45t 46,974,34t 25.805.4s1 46,974,34L
(b) Merchandise goods & Temple Goods

Opening Stock 7,131_,279 11,599,915 7,1,37,279 11",588,915
Direct Cost 977,826 6,132,559 977,826 6,1,32,559
g,1og,1o5 17,72L,473 9,109,105 t7,721,473
Less : Closing Stock 6,1,46,728 7,1.31.,279 6,1,46,728 7,1,3r,279
Cost of Merchandise Goods & Tcmplc
Goods L,952,377 10,590,194 L,962,377 10,590,194
(c) Resort Housekeeping Expenses

Housekeeping Expenses 4,794,734 3,217,342 4,794,734 3,2r7,342
SPA Operation Expenses 48,847 48,847
Guest Supplies 233,1_44 'J,,r44,975 233,r44 1,1,44,875
Cost of Resort Housekeepins 5,076,724 4,362,2L7 5,O76,724 4,362,217
Total 32,845,553 6L,926,752 32,845,553 6t,926,752
4.17 Other Income

Other Income comprise of rental income, receipts from insurance claim, interest, rebate and
other incomes generated other than from core business activities.
(Amount in NPR)
Group Stand Alone
Other Income
7lL5l202t 7hslzozo 7ltsl2o2t vlLs12020
Rental Income L,820,240 4,r5r,369 1,820,240 4,1,51,,369
lnsurance Claim 1,417,346 6,926,993 1,,417,346 6,926,893
Compensation Income L'J.,734,44O 1_1,,V34,440
lnterest Income 809,962 825,607 809,962 825,607
Rebate lncome 495,195 495,r95
Miscellaneous Income 2,924,025 5,392,059
\
2,924,025 5,392,059
Total 7,466,768 29,030,357 7,466,769 29,030,357
4.18 Administrative Expenses

The heading includes all indirect expenses other than operation expenses. The company
recognizes Administrative Expenses as and when legal or constructive obligation in respect of
such expenses arises to the company.
(Amount in NPR)
Group Stand Alone
Administrative Expenses
7lr5t202t 7lrsl2020 7ltsl2o2r 7hs/2020
AGM Expenses 85,000 93,450 85,000 93,450
Annual Maintenance Charge 2,71,5,400 L,552,588 2,71,5,400 1,552,599
Audit Expenses L00,000 100,000
Audit Fee 641,300 340,000 625,000 330,000
Books And Periodicals ro,o27 L0,o21.
Cleaning Expenses '1,,532,746 3,330,046 L,532,1.46 3,330,046
Communication And Postage 475,426 4s6,650 475,426 456,650
Consultancy Fee 1,195,522 4,803,862 1,,r95,522 4,803,962
Annual Day Expenses 196,680 196,690
Supervision / Monitoring Fees t2,ooo 12,000
CSR Expenses 103,948 103,948
Custom Clearing Charges 187,685 47,904 r87,685 47,904
Donation 166,000 165,000 166,000 155,000
Entertainment 89,753 327,920 89,753 327,920
Fine & Penalty 87r,172 2,902,998 841,,947 2,902,ggg
Gardening Expenses 113,885 t68,737 113,885 168,737
Internet Charges 1,040,103 1,,364,!54 L,040,1,03 1,364,L54
Insurance Expenses 5,322,526 4,762,953 5,322,526 4,762,953
Laundry And Dry Cleaning 320,546 1,,175,485 320,546 1,,I75,495
Leasehold Fee 540,000 540,000 540,000 540,000
Medical Expenses 833,159 210,1.69 833,158 210,1,69
Miscellaneous Expenses 9,550 775,852 9,550 775,852
Office Expenses 304,167 r,279,471 304,1,67 1,,279,471
Discount Allowed 933,317 536,071 933,317 536,071
Painting & Decoration 897,946 4,706 897,946 4,706
Pooja Expenses 79,355 100,610 79,355 100,610
Power & Fuel 25,463,O92 24,500,1"56 25,463,092 24,500,156
Printing And Stationery L,964,775 3,974,997 L,963,475 3,873,697
Rate & Taxes 289,933 341,,373 289,933 341,,373
Registration and Renewal 969,r87 1,557,301 964,871 L,517,301
Repair & Maintenance L0,374,672 6,455,552 70,374,672 6,455,552
Subscription & Membership 281,800 30,700 28L,800 30,700
Rental Expenses 735,978 883,998 71,1.,978 859,999
Commission 44,613 720,668 44,613 720,669
Tra nsportation Cha rges 90,900 858,900 90,900 858,900
t,u\-
Travelling Expenses 103,915 6L7,727 L03,9L5 617,727
Upkeep & Service Cost 1,32L,99g 6,441,857 1,321,,999 6,44I,857
:i HtA-
\,
n.)f
u-v'
.
ffi-v!z b G'
,(\
Significant Accounting Policies and Notes to the Accounts for the year ended 15 July 2021
Administrative Expenses Group Stand Alone

7l1sl202t 7i'512020 7lt5/202t 7l75l2o2o
Share lssue Expenses 8,779,332 62s,000 8,779,332 625,000
Underwriting Commission 454,1,1,8 454,1,18
Total 59,339,293 72,t59,472 69,263,t52 72,O94,t72
4.19 Personnel Expenses

Salary, allowances and other incentive expenses of all human resources employed by the
Company for day-to-day running of business operation including outsourced staffs has been
classified as personnel expenses. Details of personnel expenses as follows:
(Amount in NPR)
Personnel Expenses Group Stand Alone

7/ts/202r Tltsl2020 7hsl202t 7/7sl2O2O
a. Inhouse Staff Expenses
Sa la ry 26,329,075 48,956,834 26,329,075 48,956,934
Incentive 86,825 86,825
Dashain Allowances 1,,914,485 4,781,I73 1.,914,495 4,78I,773
Overtime Allowances 268,069 764,17'J. 268,069 764,171
Provident Fund Contribution 1,,435,722 2,695,923 1,,435,722 2,695,923
Gratuity Expenses 'J,,195,944 2,239,373 1,195,944 2,239,373
Training And Development 5,000 s99,092 5.000 599,092
Staff Cafeteria Expenses t,774,935 3,9L9,252 1_,774.935 3,9r9,252
Staff Wclfarc Expenses 286,295 I19,254 28b,285 'J,rg,254
Leave Encashment Expenses 325,717 499,1-39 325,717 489,13g
Provision for Bonus Expenses
Compensation 354,704 354,704
Uniform Expenses 36,949 800,559 36,949 800,559
Subtotal 34,013,709 65,353,770 34,0L3,709 65,353,770
b. Outsourced Staff Expenses

Labour Wages 1,875,551 'J.,526,749 I,875,551_ L,526,749
Gardening & Cleaning Expenses 781,,959 I,234,925 781_,959 1,,234,925
Outsourced Staff Payroll Expenses 12,1"34,594 25,973,3L0 12,I34,594 25,973,31.0
Bio-Engineering Expenses
Subtotal 14,792,to4 28,734,993 t4,792,t04 28,734,993
Total 48,905,913 94,099,653 48,805,913 94,099,653
\y4
I\L
vy \ / Nd
Page 27 of 34
Significant Accounting Policies and Notes to the Accounts for the Year ended lS luly 2O2L
4.20 Advertisement expenses

The advertisement expenses include expenses made by the company for advertisement of
Company through various mediums such as advertisement in online medias like TVs, radio, pop
up, advertisement in banners, hoarding boards, photo shoot etc.. Details as follows:
(Amount in NPR)
Advertisement Expenses Group Stand Alone

Tlts/202L Tlts/2o20 7ltslzozL Tlrs/202o
Advertisement - Online media 28,050 2,L89,42! 28,050 2,1.99,42r
Advertisement - Newspapers and magazines 1,085,986 1,085,996
Advertisement - Banners/ Hoarding Boards 4,846,107 'J,,231,,032 4,846,1,07 1_,23L,032
Events and Programme 227,050 227,050
Total 4,874,157 4,733,490 4,974,157 4,733,490
4.1 Depreciation and Amortization Expenses

Depreciation on Property, Plant and Equipment other than freehold land i.e. the Company's
freehold building and machinery, vehicle and other assets is provided on 'Written Down Value'
based on estimated useful life estimated by the management. Details as follow:
(Amount in NPR)
Depreciation and Amortization Group Stand Alone
Expenses Lsl07lzozr t'i,l07l2O2O tsl07l202r tsloTl2o2a
Tangible Asset 723,46L,019 'J,21,,664,622 123,461,,01,9 121,,664,622
Intangible Asset 896,554 s83,273 896,554 583,?71
Total t24,357,573 122,247,996 t24,357,573 122,247,996
4.21 Finance cost

Finance cost includes interest, charges and fees paid
to financials institution for availing long
term as well as short term borrowings. The Company has booked transaction charges for
availing loan facility such as loan management fee, agency fee as expenses for the current
period by considering materiality. Details as follow:
(Amount in NPR)
FinanCe ExpChses
Gr6up Stand Alone
7lLsl2O2t 7lLsl2o20 Tlts/202L 7lt'l2O2O
Bank Charges 3,504,292 962,276 3,504,292 962,276
Interest on Term Loan 1,3L,305,g24 194,985,390 1_3t,305,924 194,995,3g0
Interest on Vehicle Loan 282,633 9r7,270 282,633 917,270
Interest on Bridge Gap Loan 54,882,030 1,9,044,202 54,882,030 1,9,044,202
Interest on Demand Loan 859,883 859,883
Loan Management Fee 2,446,000 2,446,0O0
Agency fee 2,227,334 2,315,325 2,227,334 2,31,5,,325
Total 195,509,095 2t8,224,463 195,508,095 219,224,463
\a--
i.
4.22 Basic Earnings Per Share
Basic Earnings per share amount has been calculated based on profit/loss attributable to
ordinary equity shareholders of the Company. Basic earnings per share has been calculated by
,dy
dividing profit/loss attributable to ordinary equity shareholders of the Company by number of

ordinary shares outstanding during the period.
(Amount in NPR)
Standalone
tlrclziio 71t51202L, 7lL6l2b20
i hmount Amouni Amount Amount
Earnings after Tax (272,766,725) ( 106,657,862) (272,692,347) (106,616,800)
No of Shares 15,340,910 13,500,000 15,340,91.0 13,s00,000
Earnings per Share ft7.781 (7.s0) (17.78) (7.s0)
5 Disclosure and Additional Information
5.10 Financial Risk Management

The Management has overall responsibility for the company's risk management and internal
controls system.
The Company's principal financial liabilities comprise loans and borrowings and trade and
other payables. The main purpose of these financial liabilities is to finance the company,s
operations. The Company's principal financial assets comprise investments, trade and other
financial receivables and cash and cash equivalents that arrive directly from its operations.
The company is majorly exposed to Operational Risk, Strategic Risk, Compliance Risk and
Financial Risk. Following is the description of various risks associated and how these financial
risks are managed.
Operational Risk
Operational risk is the risk of a change in value caused by the fact that actual losses, incurred
for inadequate or failed internal processes, people and systems, or from external events
(including legal risk), differ from the expected losses. lt can include various classes of risks,
such as fraud, security, privacy protection, legal risks, physical (e.g. infrastructure shutdown)
or environmental risks
Some prominent operational risk for the company along with mitigating factor are:
o lT Security Risk
In today's world, use of technology is very much important. However, use of such
technology is associated with various risks of theft, misuse of Company's private data and
impact on day to day operation due to loss of data. The management is planning to mitigate
the risk by implementing proper disaster recovery and business continuity plans, lT audit.
r Malicious attack on the network, systems and lT Infrastructure which is mitigated by the
management by proactively monitoring and responding timely to such unwanted activities.
o Failure in network/ lT systems and infrastructures. For this, specific back-up and resilience
policies are built in the company's network, any failures in network including those arising
due to natural causes like pandemic or natural disasters are instantly taken care of by the
experts through remote desktop or other various measures.
Strategic Risk
Strategic risk is the risk that failed business decisions may pose to a company. Strategic risk is
often a major factor in determining a company's worth, particularly observable if the
company experiences a sharp decline in a short period of time.
Various Strategic Risk related to the company are:
o Competition from emerging technology and services
o Customer's Preferences and high Expectations
. Regulatory and legal changes
o Turnover of senior management team
The company manages such strategic risk by identifying such factors which may affect the
strategies of the company, determining key performance indicators, creating process of
timely reporting and updates of legal changes and revisiting the strategies based on changes
to the environment in order to grasp unexpected opportunities that arise.
Market Risk
Market risk is the risk that the fair value of future cash flows of a financial instrument witl
fluctuate because of change in market prices. Market prices comprise four type of risk:
interest rate risk, currency risk, commodity price risk and other price risk, such as equity price
risk. Financial instruments affected by market risk include loans and borrowings and deposits,
lnterest Rate Risk

Interest risk is the risk that the fair value or future cash flows of financial instrument will
fluctuate because of changes in market interest rate. The company's exposure to the risk of
changes in market interest rates relates primarily to the company's bank overdraft and shgrt
term deposit. The company manages its interest rate risk by negotiating with highly reputed
commercial bank.
2. Foreign currency risk

Foreign currency risk is risk that the fair value or future cash flows of a financial instrument
will fluctuate because of changes in foreign exchange rates. The company's exposure to the
risk of changes is foreign exchange rates relates primarily to the company's operating
activities (when revenue or expenses is denominated in a different currency from the
company functional currency). The company manages its foreign currency risk by not holding
the receivables and payables in foreign currencies for long durations.
3. Commodity price risk

The company is affected by the volatility of certain commodities. lts operating activities
require the ongoing purchase of raw materials are therefore require a continuous supply of
the same. The company manages this risk by purchasing material and supplies from the
suppliers identified by the group and the company has long term relation with the suppliers. \r\-
Credit risk
Credit risk is the risk that counterparty will not meet its obligations under a financial
instrument or customer contract, leading to a financial loss. The company is ex
vl $d
risk from its operating activities (primarily for trade receivables) and from its financing
activities, including deposits with banks and financial institution.
1. Trade receivables
Customer credit risk is managed by the Company's established policy, procedures and control
relating to customer credit risk management. Credit quality of the customer is assessed, and
individual credit limits are defined in accordance with this assessment. Outstanding customer
receivables are regularly monitored.
2. Cash deposit
Credit risk from balances with banks and financial institutions are managed by maintaining
the balances with highly renowned banks and financial institutions only.
Liquidity risk
The Company monitors its risk to a shortage of funds on a regular basis through cash forecast.
The Company's objective is to maintain a balance between continuity of funding and
flexibility using bank overdrafts and bank loans. Access to sources of funding is sufficient.
Reputational Risk
It refers to the potential for negative publicity, public perception or uncontrollable events to
have an adverse impact on a company's reputation, thereby affecting its revenue. The
management has mitigated such risk by conducting various CSR activities, being pro-active
towards customer service and being mindful of ethical conducts.
Other Factors
The Company is also exposed to other various risks such as political stability, changing legal
and statutory requirements or any other hazards caused due to wastages of the Company.
This risk can be mitigated by discussion with relevant stakeholders and forming long term
strategies.
5.11 Capital management

The Company's objectives when managing capital is to maintain a strong base and safeguard
the Company's ability to continue as going concern, so as to maintain investor, creditor and
market confidence and to sustain future development of the business. The Directors monitor
and are determined to maintain an optimal debt-to-equity ratio that complies with debt
covenants and regulatory requirements.
For the purposes of the Company's capital management, capital includes paid-up capital and
other reserves attributable to the equity holders of the company. The primary objective of
the company's capital management is to maximize the shareholder's value. The Company
manages its capital structure and makes adjustment in the light of changes in economic
condition and the requirements of the financial covenants. To maintain or adjust the- capital
structure, the company may adjust the dividend payment to shareholders, return capital to
r.
shareholders or issue new shares. v\-,
There was no change in company's approach to capital management during the year.
Of the Company. This risk can be mitigated by discussion with relevant stakeholders.
,/' 4 \'f
5.12 lmpact and Assessment of COVID-l9:

The COVID 19 pandemic developed rapidly world-wide and its early onset was faced in Nepal.
The COVID-19 pandemic impacted the business operation and the company could not
continue its revenue generating activities during the Lockdown period. Considering the wide
range of factors like current and future profitability, overall impact to the economy and the
industry in which it operated, there is no significant risk to the business and there is no doubt
in its ability to continue as a going concern over the foreseeable future. Company has also
introduced different schemes in market which increases the flow of people, as compare to its
previous periods.
The company willcontinue to closely monitor any material changes arising due to the impact
of the pandemic/future economic conditions impacting the financial and operation
performance of the company and take necessary measures to address the same.
5.13 Contingent Liabilities and commitment

The company recognizes a contingent liability in following situation:
a. possible obligation that arises from past events and whose existence will be confirmed only
by the occurrence or non-occurrence of one or more uncertain future events not whollv
within the control of the entity; or
b. a present obligation that arises from past events but is not recognized because:
t. it is not probable that an outflow of resources embodying economic benefits will be

required to settle the obligation; or
il, The amount of the obligation cannot be measured with sufficient reliabilitv.
The Company has received Writ no 073-wo-0837 on 2073/1.1./06 which is filed by Dipak Bikram
Mishra regarding the construction of building instead of Cottage as per agreement.
The Company has received Writ no 076-AP-0136 on 2076/05/22 which is filed by Roshni Giri
additionally on the above Dipak Bikram Mishra Rit.
5.14 Related Parties Disclosures
ldentity of related parties

For the purposes of these financial statements, parties are considered to be related to the
company if the Company has the ability, directly or indirectly, to control or jointly control the
party or exercise significant influence over the party in making financial and operating
decisions, or vice versa, or where the Company and the parties are subject to common control.
Related parties may be individuals or other entities.
Related parties also include key management personnel defined as those persons having
authority and responsibiiity for planning, directing and controlling the activities of the
Company either directly or indirectly.
r
The Company has related party relationship with its significant investors, subsidiaries, L\
associates if any and key management personnel.
$ ff
32 of 34
Details of Related party of Chandragiri Hills Limited are as follows:
1. SignificantShareholders
$ffi
1 Hem Rai Dhakal 2,943,339 294,333,800 1.9.r9%
I 2 CHANDRA PRASAD DHAKAL 2,943,337 294,333,700 1.9.r9%
I
3 Uttam Kumar Nepal 1,,962,225 1_96,222,500 12.79%
BHAT BHATENI SUPER MARKET &
981,,1,I2 98,111,200 6.40%
4 DEPARTMENTAL STORE Pvt. Ltd.
I
5 Ambika Prasad Paudel 903, L50 90,315,000 5.89%
6 KALYAN GURUNG 846,1,I3 84,61,L,30O 5.52%
I 7 Nawa Raj Nepal 654,075 65,407,500 4.26%
8 MIN BAHADUR GURUNG 654,075 65,407,500 4.26%
9 Sabitri Gurung 654,075 65,407,500 4.26%
I 10 Hathway Investment Nepal 270,OOO 27,OOO,OOO L,76%
1.1 KUMAR KESHAR BISTA 270,OOO 27,000,000 1,.76%
I
2. Subsidiaries details
+ii
I
Multi Pokhara Development Private Limited 1,OO % Subsidiary company
Chandragiri Hills Paragliding Limited
I
3. Transaction with related party
I , ., : l
ffiH
i;.,;li!'1,u",,,
L IME Ltd 733,257.O0 325,L81,.9?-
2 IME Management P.Ltd 7.792.00
3 IME Digital P.Ltd 693,213.81
4 IME Motors P.Ltd 22,450.0O
5 IME General Insurance 267,634.97
6 IME Life lnsurance 156,060.11
7 IME Travels Pvt.Ltd 5,500.00 67,695.00
8 Global IME Bank Ltd 2,357,925.95
9 Global IME Capital Ltd 409,000.00
10 Hathaway Investment Ltd 146,292.r3
1.1 Ashok Lt Engineering P.Ltd 59,383.38
12 Bhatbhateni Supermarket P.Ltd 4,152,795.94 322,247.41 IJLW
TOTAL 5,359,926.22 4,366,493.20
4. Key Managerial Personneland their close family members

Key Managerial Personnel of the Company:
rN/
\t -. -7i-
td/ A\ i ../
Significant Accounting Policies and Notes to the Accounts for the Year ended L5 luly 2O2t
s.N, Name Designation

1 Abhishek Bikram Shah General Manager
2 Shyam Tandukar Resort Manger
3 Binayak Pokhrel Account Manager
4 Durga Thapa Operation Manager - Revenue (Top/Bottom Station)
5 Jhalak Raj Sharma HR Officer / Company Secretary
6 Pradip Lal Nakarmi Operation Manager
1
Hawal Lama Executive Chef
8 Suresh Maharjan Manager of Engineering Department
9 Indira Paudel Assistant Sales Manager
5.15 Events after reporting date

The company monitors and assess events that may have potential impact to qualify as
adjusting and/or non-adjusting events after the end of the reporting period. All adjusting
events are adjusted in the books with additional disclosures and non-adjusting material
events are discloses in the notes with possible financial impact to the extent ascertainable.
There are no material events that have occurred subsequent to 15th July 2O2t tillthe signing
of the financial statement.
Page 34 of 34

Financial Statements Of: Bhatta Company

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Financial Statements Of: Bhatta Company

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Chandragiri Hills Limited

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Annual Audit is in progress

Independent Auditor's Report

Report on the Consolidated Financial Statements:

Basis for opinion

Key Audit Matters

disaggregated data-, -"to detect possible I

irregularities..;in s6les traDkctions throuehout I

Property, Plant & Equipment o We obtained an understanding, evaluated the

Auditor's Responsibilities for the Audit of the Financial Statements

Report on Other Legal and Regulatory Requirement

Yagya Raj Bhatta, FCA

D ate : 207 8 / 09 / 06 (2027/ 12 / 21,)

As a part of audit in accordance of NSAs, we exercised professionaljudgment and maintain professional

Other Non-Financial Assets

) ) 1 ,948,824 413,083.421 221,948,824 413,O83 ,421,

7,466,768 29,030,357 7,466,768 29,030,357

73,55r,776 2O9,2O5,4Lt 9L7

27a,224,463 195,508,095 278,224,463

r2r,956,1201 (121,881,1 941,752]-

124,357,573 r22,247,896 1-24,357,573 122,247,896

313,893) (246,238,7s2l- ( 131,191,648

Net Profit for the Year 72,766,72s1 (106,6s7 (105,616,800)

Prof it/Loss f rom Discontinue operation

As per our report of even date

', /il Kalyan Gurung Uttam Kumar Nepal

Depreciation and ammortization expenses L24,357,s73 1,22,247.896 t24,357.s73 1.22,247,896

Changes in Operating assets and liabilities

Sash Flows From Financing Activities

Yagya Raj Bhatta, FCA

Profit for the Year

Items that will be reclassified to Income Statement:

Bhatta & Cdmpany

Ambika'Prasad Poudel .m Uttam Kumar Nepal

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Chandragiri Hills Limited

L. General Information of Reporting Entity

Rs. 1,53,40,91,000 and paid-up capital is Rs 1,53,40,91,000 as on 2078/03/31'.

Standalone Financial Statements of the Company comprises of financial Statement of the

The consolidated financial statements of the Group comprise of Consolidated Statement of

NFRSs so applied confirm in all m pect, to International Financial Reporting Standards

New reporting standards in issue but not yet effective

2.2 Accounting Conventions

Management regularly reviews significant unobservable inputs and valuation adjustments.

. Level 3 - Inputs are unobservable inputs for the Asset or Liability.

2.3 Reporting Period and approval of Financial Statements

2.4 Functional and Presentation Currency

2.6 Accounting Convention, Estimates, Assumptions and Judgments \"-

1. Estimate of useful life of property, plant and equipment

2.7 Change in Accounting Policies

2.8 Materiality and Aggregation

2.11 Limitation of NFRS lmplementation

3. Summary of Significant Accounting Policies

3.1 Going concern

3.2 Effect of changes in foreign exchange rate

3.3 Property, Plant and Equipment